NZF raises $125k to finance reverse listing possibility
NZF Group [NZX: NZF] has raised $125,000 from a wholesale investor to finance options for a possible reverse listing almost a year after it entered voluntary administration when two prior attempts at reverse listing fell through.
The company will sell 16 million shares at 0.008 cents apiece to wholesale investor Chai Kaw Sing, NZF said in a statement. The funds raised will let the shell company pay its NZX listing fees and cover the costs of "identifying, investigating and potentially consummating a suitable acquisition or investment by NZF," it said. Chai will also provide a $25,000 facility to help complete any potential deal.
NZF's board first suggested liquidation in April 2014 when restructuring plans aimed at returning the company to profitability fell over after auditor RSM Prince resigned a day after NZF was forced to restate its first-half results for a second time. The move was blocked by a major note holder, who wanted to find more value in the business but subsequent efforts to find a viable reverse listing failed.
Mr Chai is director of Blackwell Global Investments, a brokerage firm for private and institutional clients with offices in Australia, Cyprus, New Zealand and the UK, according to its website. The firm is listed on New Zealand financial services providers register as providing wholesale and generic financial advice, broking services, and trading financial products and foreign exchange for other people.
NZF's shares last traded at 0.1 cents, valuing it at $1.1 million.