Eastern Hi Fi gains waiver for pre-Xmas loan
Eastern Hi Fi gains waiver for urgent, pre-Christmas loan
Dec. 12 - Eastern Hi Fi Group, an importer and retailer of audio visual equipment, was granted a waiver from the NZX to raise NZ$3 million via a rights issue to remain solvent and buy stock for the peak Christmas season.
The company’s second-largest shareholder, James Urquhart, agreed to immediately advance NZ$1 million of the total sought by way of a loan, which is to convert to shares. Urquhart currently owns 19.8% of the company’s stock.
Under the rights issue, shareholders would get two shares for every share held at 15 cents apiece. The issue is subject to a vote by shareholders in January.
In September, the company reported a first-half loss of NZ$569,091 as revenue fell 26% to NZ$5.4 million.
The company incurred one-time costs to reduce the number of unprofitable stores. The stock last traded unchanged at 10 cents on Sept. 26 on the NZAX market.