Global Technology (Glotec) has announced the terms of a rights offer aimed at erasing its debt by raising up to R52.98 million before expenses.
Glotec announced in December that it had struck a deal with its financiers to convert about R46 million debt into Glotec equity by way of a partially underwritten rights offer at 2c a share.
The group`s board has resolved to proceed with the offer of about 2.65 billion new shares in the ratio of six new shares for every Glotec share held.
The purpose is to convert into equity the R46.09 million of debt owed to the major financiers which have underwritten the rights offer.
The underwriters have agreed to underwrite 2.3 million new shares, amounting to R46.09 million.
The group says the last date to trade in Glotec shares to be entitled to participate in the rights offer is 5 March 2004, for settlement by the record date of 12 March.
Talks relating to the disposal of Brolink and Global Technology Insurance Systems, also first announced in December, are still underway.
Related stories:
Deal to restore Glotec`s solvency
Auditors raise doubts about Glotec
Share