JSE-listed Faritec has reassured staff that salaries will be paid at the end of the month.
The reassurance comes after ITWeb heard concerns that several senior Faritec staff were concerned the company's financial position meant they may not be paid.
CEO Fanie van Rensburg says salaries will be paid. “If we can't pay people, that's a big problem... we won't have to go into liquidation, they'll do it automatically for us.”
Faritec is wrapping up a financing deal that could see as much as R80 million being raised for the company to ensure enough operating cash and implement its turnaround strategy.
The cash will be raised through a rights offer and - so far - shareholders, management and creditors have committed to buying up shares worth R55 million.
Van Rensburg hopes to ultimately raise R80 million. He says the financing is on track. Details of the deals are expected to be released soon.
Faritec's auditor, Charles Orbach & Company, in January noted the company incurred a net loss of R159.5 million for the year to June. The auditor added that Faritec has continued to incur losses and has restricted cash flows.
Related story:
Faritec gets 'rescue' funding
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