NZF and Inventory Technologies restructure plans up to three weeks away

NZF plans to acquire 100% of healthcare technology business for $5m via the issue of 20m new shares at 25c apiece.

NZF Group [NZX: NZF] says plans for Inventory Technologies to use the listed financial services shell for a reverse listing on the NZX are up to three weeks away as it finalises documentation and applications to regulators.

NZF plans to acquire 100 percent of the Christchurch-based healthcare technology business for $5 million via the issue of 20 million new shares at 25 cents apiece, while also restructuring its own notes via a buyback and share issue as well as asking noteholders to forgive all accrued but as yet unpaid interest. The Auckland-based finance company expects draft documentation for the restructure will be lodged with regulators in the next 10 to 15 business days before then forwarding it to all stakeholders, it said in a statement.

Inventory Technologies, owned by Peter Montgomery and Peter Gillman, plans to commercialise its 'internet of things' Cleversense healthcare management technology in the first quarter of 2015, with its Clever Medkit product, a first aid kit which connects to the cloud, monitoring its use and inventory. NZF has said the company generates no meaningful revenue and that has said noteholders will not "receive an immediate recovery of the full face value of their capital investment in the notes in cash."

NZF's board has been looking for a company to use its shell as a reverse listing after its largest noteholder, Nessock Custodians, delayed liquidation at a special meeting in August to try to find more value in the business. The reverse takeover plans have the backing of Nessock Custodians, which according to its annual report held 15.8 percent of NZF's $18 million in capital notes at June 13.

The board first suggested liquidation in April. Restructuring plans aimed at returning the company to profitability fell over when auditor RSM Prince resigned a day after NZF was forced to restate its first-half results for a second time.

The shares last traded in December 2013 at 1 cent, valuing the firm at $1.1 million.