Gandulf Trust has stepped into penny stock technology company Dectronic to perform a rescue operation, following the same recipe as it used at floundering biotech company, Micrologix.
As was the case with Micrologix, many of the Dectronic directors have stepped down and Gandulf Trust has installed a management team that reads similar to that which moved into Micrologix late last year.
Dectronic has been trading at 1c and reported an attributable loss of R1 million at the interim stage. Gandulf Trust has taken over at the company where previous manager, Financial Insourcing Specialists, left off.
The deal sees Gandulf acquiring 34.2 million Dectronic shares for a purchase consideration of R3.4 million.
In addition, Gandulf acquired the loan accounts of Dectronic amounting to not more than R100 000 from Financial Insourcing in return for 5 million Micrologix shares at 2c per share.
Gandulf will step into Dectronic with a compromise offer to Dectronic creditors - the first duty on the long list it would have drawn up to perform the rescue operation.
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