secured debt funding.
On Friday, the company said it was in the process of wrapping up the debt facility with a potential funder. ACT needs the funds to perform on future contracts.
It cautioned that the funding could affect its share price and shareholders should be cautious when trading its stock. ACT did not indicate how much funding it would raise, nor how the funding would be paid off.
In November, when it published its latest results, ACT said it would need additional funding to perform on future contracts, and that the directors would explore various options to ensure adequate resources were in place.
In its results for the six months to August, ACT said it made an R83.6 million loss after yet another challenging trading period. The company generated negative cash of R71.4 million from operations before taking working capital into account.
The net cash movement for the six months was an outflow of R19.4 million due to positive working capital of R72.8 million.
ACT said the “major influences on our business, namely the health of the global and local economy, the performance of the rand against the US dollar, the lack of volumes through our factory and revenue-generating cellular tower installation projects, as well as having to complete historic loss-making cellular tower and fibre-optic contracts, impacted our results negatively during the reported interim period”.
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