JSE-listed IFCA Technologies has issued 20 million shares, to raise R1.38 million, to settle outstanding creditors and fund operating expenses, it says.
IFCA says its empowerment partner is also selling down its stake and IFCA cautions that the share dealings could result in a change in control. It did not provide reasons for the empowerment partner's sell-down.
IFCA is an investment holding company that has two subsidiaries. IFCA sWare focuses on the group's software solutions and services, and IFCA hWare on the group's computerised business equipment solutions.
IFCA's latest results, for the six months to June, indicate the company made a net loss of R1.2 million, wider than June 2009's loss of R817 332. Its year-end to December 2009 showed a net loss of R1.9 million.
Yesterday, it announced the shares had been issued at 6.9c each, which is a 10% discount on the trading price at the time the shares were agreed to be issued. Trade in IFCA shares closed at 16c yesterday.
Shifting control
IFCA's board approved the issue of as many as 57.5 million shares, which are set to be issued to Decaweb Investments and its associates.
The balance of the shares, 37.5 million, will be listed on the JSE when Decaweb pays IFCA R2.59 million, unless Decaweb does not buy more shares from Kutana Investments, IFCA's empowerment partner.
During the 2009 financial year, Kutana bought a 26% stake in IFCA from existing shareholders. Kutana is a women's investment group and is led by Thoko Mokgosi-Mwantembe, who was previously CEO of HP South Africa.
However, Kutana has since sold 6.8 million shares and is now either selling out the rest, or a large percentage, of its shareholding, IFCA said yesterday. As a result, says IFCA, Decaweb could end up owning more than 35% of IFCA and control of IFCA could change hands.
In the middle of last year, IFCA said an unnamed Singapore-based fund had subscribed for 15 million shares, at 4c a share, which raised R600 000.
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