Energy Mad gets $1.7m for Chinese joint venture factory stake
The price is in line with the company's estimate last month.
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Energy Mad, whose shares have dropped 21 percent this year after it failed to meet earnings forecasts, sold its 20 percent stake in its Chinese joint venture factory for $1.7 million.
The sale price is in line with the company's estimate last month. Energy Mad, an energy efficient light bulb innovator, retains its preferential supply, payment and exclusivity terms with the factory as part of the agreement, the Christchurch-based company says in a statement.
The sale includes a $400,000 gain from the recovery of investment loan capital in the joint venture which was noted as impaired in the 2008 accounts, it says.
Shares in Energy Mad, which has yet to post a profit since listing in late 2011, were unchanged at 37 cents.
Last month, the company said it expects to make a profit in the 2014 financial year on increased sales and reduced costs.
Funds from the sale of its factory stake strengthens the company's balance sheet and positions it to grow its business in the US, Australia and New Zealand, it said.
(BusinessDesk)
Tina Morrison
Wed, 11 Jul 2018
Wed, 11 Jul 2018
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Energy Mad gets $1.7m for Chinese joint venture factory stake
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