Provenco stock sinks further as capital sought
Provenco stock sinks further as shareholders decline request for working capital
July 31 – ProvencoCadmus shares fell, bringing their week-long slide to 54%, after the provider of electronic point-of-sale systems said some of its largest shareholders had declined to assist with urgently needed working capital.
The company, which traded as high as NZ$1.17 in February 2007 and counted Todd Capital, Stephen Tindall and Alan Hubbard among its investors, slipped 5% to 3 cents today.
In July
28, the company said it was seeking expressions of interest
from potential investors to support working capital while it
prepares for a broader restructure. The complexity of the
changes and weaker-than-forecast trading performance during
May - July period “has placed significant pressure on the
resources of the business” and it was in talks with its
banks and existing shareholders for short-term
assistance.
Today, the company said the talks are
ongoing. “Some of the largest shareholders have declined
to fund further working capital, however other shareholders,
and broader restructuring avenues are still being
pursued.”
“The group continues to face risk and uncertainty with its forecast cash flows” while “the payments business is continuing to trade positively,” it said.
(BusinessWire)