Straightedge board recommends liquidator
STRAIGHTEDGE LTD BOARD RECOMMENDS APPOINTMENT OF LIQUIDATOR
Board Of Straightedge Ltd Resolves To Recommend Liquidation of the Company
Auckland, 13 September - The Board of Straightedge Limited (NZSE:SRE) announced today that it will recommend to its shareholders that they resolve to put the New Capital Market company into liquidation so that its debts can be repaid and assets distributed to shareholders.
As a result of the Straightedge Board resolution, a special meeting of shareholders will be called as soon as possible to appoint a liquidator. It was also resolved that Straightedge Limited request to be de-listed from the New Zealand Stock Exchange pursuant to Listing Rule 5.4.1.
Straightedge Limited, the New Capital Market listed company, intended to acquire as part of its Key Transaction and capital raising, Straightedge Division, the business unit of Carter Holt Harvey New Ventures.
Marc Potter, Chairman of Straightedge Limited says after it became apparent that the capital raising was not going to be successful the Board decided (after discussions with Carter Holt Harvey) that recommending liquidation to its shareholders was the best means of returning the original issue price of their shares to them as quickly as possible.
"Our main aim all along has been to protect our shareholders and in conjunction with Carter Holt Harvey we looked at all the options to find the best way of doing this. We believe that recommending to our shareholders that they approve the liquidation of the company is the first step of getting their money back," says Potter.
Craig Knox, Chief Executive of Carter Holt Harvey's New Ventures says that the company will work with Straightedge Limited to ensure that all its shareholders receive the original issue price of their shares upon liquidation of the company.
"Carter Holt Harvey has said from day one that it stands behind Straightedge and will ensure that all shareholders receive back the original issue price of their shares.
If there is a difference between the amount realised on the liquidation of Straightedge and the original issue price of the shares then Carter Holt Harvey will make up the difference," says Knox.
Knox also says that Carter Holt Harvey's Straightedge Division continues to do well as a key part of the New Ventures business.
"Straightedge Division has made significant inroads with its software products into the Australasian and North American markets, and is a viable part of Carter Holt Harvey's business. In the normal course of New Ventures we will be looking at other funding options for our Straightedge Division as the business grows."
Shareholders can expect to receive a
notice of meeting shortly, which will ask them to vote in
favour of placing Straightedge in liquidation.