Listed IT group Gijima is in the process of raising R100 million to recapitalise the business through a rights offer.<\/p>\n
It has proposed a fully underwritten renounceable rights offer of one billion new ordinary shares.<\/p>\n
The subscription price of 10 cents per rights offer share, is proposed in the ratio of 503.9867 shares for every 100 ordinary shares held in Gijima at the close of business on Friday, 5 December 2014, the group said.<\/p>\n
“The proceeds from the rights offer will be used, inter alia, to recapitalise the company, to ensure compliance with the financial covenants pursuant to its trade receivables securitisation funding program and to finance the working capital and capital expenditure requirements of the company,” Gijima said.<\/p>\n
On Friday, the group announced the appointment of Bill Hoggarth to the company\u2019s board with effect from 20 November 2014.<\/p>\n
Hoggarth joined Gijima on 1 May 2014 as a new chief sales officer from Dataways, a Business Intelligence product and services company he co-founded in 2012.<\/p>\n
\u201cThere is a lot of work to be achieved to turn around the business and Bill, who joined Gijima on 1st May 2014, has already proven he has added immense value,\u201d said Gijima CEO, Eileen Wilton.<\/p>\n
The technical aspects of the issue were recently approved by shareholders. The second vote by shareholders will be held in December. The issue has been approved by the Competition Commission.<\/p>\n
In the last 12 months Wilton said the group has concluded contract renewals to the value of R1.6 billion.<\/p>\n
Gijima revenue falls 17%<\/strong><\/a><\/p>\n