Blis Technologies, the NZX-listed biotech company, has given three months' notice of a plan to mop up small shareholdings to cut costs, a move affecting 63% of its current investors.
The company has got permission from the NZX to set 25,000 shares as the minimum holding. That accounts for almost two third of its shareholders who own a total of 1.73% of the company.
At yesterday's price of 1.1 cents, 25,000 shares are worth just $275. The shares have dropped 66% this year.
"In its examination of all avenues available to reduce administration expenses Blis has established that the cost of servicing small shareholdings is disproportionate to the underlying value of the share parcels," the Dunedin-based company said in a statement.
Holders of less than 25,000 shares as at March 21 will have their shares sold by a broker instructed by Blis and receive the proceeds "after deduction of reasonable sale expenses."
The company said shareholders have three choices - buy enough shares to lift their stake above 25,000 shares, donate their holding to the charity Cure Kids or do nothing and see their holding sold.
Blis Technologies, the NZX-listed biotechnology company, widened its forecast 2013 loss and launched a share purchase plan and placement in a bid to raise up to $1.5 million.
In August, Blis warned that its loss for the year ending March 31 may be $1.3 million, up from previous guidance of a loss of $800,000. In October it raised $1.3 million via a share purchase plan and a placement at 0.7 cents apiece.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Air NZ forecasts 85% jump in first-half pretax earnings to $400m
- TPP: Hope turns to delay in Atlanta
- Dunedin launches southern hemisphere's fastest public wi-fi network - and it's free
- NZ POLITICS DAILY: Illusions of a transtasman partnership
- MARKET CLOSE: Shares fall as profit takers enter market; Tower, MRP, Freightways decline