Faritec shareholders have given the go-ahead for the company to issue shares to Shoden as part of its recapitalisation plan.
Faritec is issuing shares and has received an investment from Shoden to increase its working capital, which will give it cash to continue operating. The rights offer is also expected to improve headline and earnings per share.
The company offered shareholders the option of taking up more Faritec shares. Of the shares issued, shareholders took up 48.32%. The offer was fully underwritten, and the unnamed companies that underwrote the deal have taken up the balance of the shares issued.
Shareholders were offered 258.2 shares for every 100 shares they own, at 3c a share. The rights offer is set to raise about R20 million after costs of about R1.26 million.
The company has also received an investment from Shoden Data Solutions of R29 million in return for a controlling stake in the business. Shoden`s primary expertise is in storage solutions.
Faritec says the issue of shares for cash to Shoden remains conditional on the Competition Commission giving the go-ahead.
Related stories:
Faritec expects a loss
Recapitalised Faritec looks ahead
Faritec rebuilds for a positive future
Share