By NZPA
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Tuesday 30th July 2002 |
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IT Capital directors said a number of investors who had committed to the capital raising had been scared off by a "campaign run by the chairman of the Shareholders' Association, Bruce Sheppard, to derail the new strategy".
IT Capital shareholders "almost unanimously" approved the share placement at a meeting in Auckland last week, at which chief executive David McKee Wright said the company had no plan B and only enough cash to last a month.
"Amendments to the resolutions passed at the AGM may offer the company a possible way forward," the company said today.
"Under the amended resolutions, shareholders have given the board the flexibility to issue fewer shares with a corresponding reduction in new capital."
The board would make an announcement within the next 5 days.
At the meeting last Tuesday, Mr Sheppard questioned the plan to raise $3.7 million and issue 137.5 million shares at 4c each to Mr McKee Wright and director Maurice Bryham, who are bringing their interests in three start-ups worth $5.5 million into the IT Capital fold.
However, Mr Sheppard did not have the numbers to overturn the resolutions.
At the meeting, Mr McKee Wright said Mr Sheppard's public opposition to the package, and criticism of an independent appraisal, had frightened potential investors.
IT Capital's only strategic asset is Hamilton-based Deep Video Imaging, a 3D screen developer which has won a contract in the United States but is not expected to be profitable for several years.
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