IRG sells Auckland advisory business to Forsyth Barr
Two of its advisers will transfer to Forsyth Barr and clients will be encouraged to follow, IRG says.
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BUSINESSDESK: Investment Research Group, the financial services company that is shedding assets to become a listed shell company, has sold most of its IRG Equity Investment Advisors to brokerage Forsyth Barr.
Two of its advisers will transfer to Forsyth Barr and clients will be encouraged to follow, IRG says.
No price was disclosed. Managing director Brent King says the basis of the sale is "an initial deposit with on-going payments based on performance".
IRG will continue to operate the residual of IRG Equity, its MoneyOnline unit and its media products, using its remaining three advisers.
Separately, IRG's major shareholder, GA Sego, has agreed to advance $750,000 to IRG as a bridging loan, which will allow "financial stability for IRG during the sell-down process", the company says.
It has gained a waiver from the NZX from getting shareholder approval for the loan, which amounts to a related-party transaction.
"This is a very good outcome for the company as it will allow speedy resolution of outstanding issues," Mr King says. "It will allow IRG to move positively to sell the residual assets and to seek an alternative business."
IRG expects to make further announcements at its annual meeting in about six weeks.
Shares of IRG last traded at 0.3 cents, valuing the company at $1.56 million, and have fallen 50% this year.
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IRG sells Auckland advisory business to Forsyth Barr
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