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ERG Group Lodges Prospectus

Sunday 18 July 2004 22:34 CET | News

Proceeds from the Rights Issue will provide $26.1 million in working capital to assist delivery of the capital intensive early stages of works in progress, meet the costs associated with the restructuring of the ERG Group business, pay for the expenses of the Rights Issue as well as enabling ERG to selectively bid on the growing number of large scale transit ticketing projects.

The remaining funds will be used to make a $15.8 million up-front payment for the Proton World International settlement and repay $15.5 million in facilities to the Ingot Group. Eligible ERG shareholders are being offered the right to acquire five new shares in ERG for every four shares held at the Record Date at an issue price of $0.20 per share. The Rights Issue is fully underwritten by Patersons Securities Limited with sub-underwriting provided by ERG’s major shareholder, Ingot Group, and a range of institutions and sophisticated investors, and ERG Directors Tony Shepherd and Allan Sullivan, both of whom have agreed to sub-underwrite $333,333 each.


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Categories: Payments & Commerce | Cards
Countries: World
This article is part of category

Payments & Commerce