Explorer - phoenix like - has entered the New Year, trading shares on the JSE after a R2.8 million lifeline from a Mauritian company.
The new cash injection comes a month after Explorer suspended shares on the JSE at the director`s request.
The card and e-commerce company was suffering from depleted cash and cash equivalent reserves, due largely to a protracted series of disagreements between itself and revenue partner Mercantile Lisbon Bank.
New partner Loita Capital Partners International (Loita) has made R800 000 cash available to Explorer, with a further R2 million available in a loan account.
Loita is a Mauritian company, established in 1994, with interests in a number of African countries.
The deal sees Loita allotted 8 million new ordinary Explorer shares at 5c each, which will after completion of the deal give the company a 34.9% shareholding in Explorer.
The Explorer Group - a subsidiary of Explorer Corporation - will be dissolved, but the company does not see this or the deal with Loita affecting the net asset value or earnings per share of the listed entity.
Explorer says it has cut back overheads and staff and has moved to smaller premises.
Loita has installed three directors of its choice on the Explorer board with the approval of the sitting board members.
Most notably, Loita has deposited its cash into Explorer`s Nedcor bank account, suggesting a move away from previous banker Mercantile.
Explorer shares have been trading at 5c, a healthy improvement on the 1c at which the shares where suspended in November.
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