Troubled Ellies looks to raise R120-million in rights offer
electronics group Ellies Holdings has announced plans for a rights offer, seeking to raise R120-million from investors to complete two acquisitions aimed at transforming its business.
In February, Ellies announced plans to buy Magetz Electrical and Power on Wheels for an initial payment of R72.6-million, with the balance of R130-million due over three earn-out periods. “To fund the initial payment, together with the earn-out for the 2023 financial year, the board of directors of Ellies has resolved to undertake a fully underwritten renounceable rights offer in the amount of R120-million through the issue of new Ellies shares at an issue price of 7c/share,” it said.
Ellies shares were last changing hands at 11c apiece. The shares have lost about half their value in the past year.Mazi Assets Management and Imvula Education Empowerment Trust have agreed to underwrite the proposed rights offer on an equal basis, in consideration for an underwriting fee of 1.5% of the value of newShareholders must still approve an increase in Ellies authorised share capital, among other pre-conditions, prior to the implementation of the rights offer.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Why Eskom load shedding has eased - TechCentralEskom chairman Mpho Makwana said further gains can be expected from the utility's generating fleet.
Read more »
Microsoft doesn't see need for new Xbox yet - TechCentralMicrosoft gaming chief Phil Spencer doesn’t “feel an imperative” to come out with a major upgrade of its Xbox game console.
Read more »
Twitter is 'refusing' to pay its Google Cloud bills - TechCentralTwitter has refused to pay its Google Cloud bills, Platformer reported at the weekend.
Read more »
Cloud costs are soaring - how to get them under control - TechCentralPromoted | If left unchecked, public cloud costs can spiral out of control, writes LSD's Deon Stroebel.
Read more »
How Apple's Vision Pro could save its VR competitors - TechCentralApple's entry could ignite a boom among rivals fighting to improve their own devices.
Read more »
Zoom Fibre helps bridge the digital divide in South Africa - TechCentralPromoted | Zoom Fibre has emerged as a prominent player committed to bridging the digital divide in South Africa.
Read more »