NZF's second reverse listing plan fails, board mulls return to investors
By Suze Metherell
April 28 (BusinessDesk) - NZF Group, the listed financial services company blocked from liquidating earlier this year by
its major noteholder, is mulling liquidation again, after plans to sell its listed shell for a reverse listing failed a
second time.
Inventory Technologies abandoned the reverse listing offer, citing commercial reasons, which would have seen NZF paying
$5 million, via the issue of 20 million new shares at 25 cents apiece, to acquire 100 percent of the Christchurch-based
healthcare technology business, the Auckland-based shell company said. NZF's board are now considering developing "a
proposal which results in the distribution of NZF's funds to the holders of the NZF Capital Notes in a timely and cost
effective manner," the Auckland-based company said in a statement.
"The board is extremely disappointed with this outcome," and is bound by confidentiality agreements from giving any
further detail on why Inventory Technologies backed out, the company said.
This is the second time NZF's reverse listing plans have fallen over, with an undisclosed company backing out last
October. NZF's board has been looking for a company to use its shell for a reverse listing after its largest noteholder,
Nessock Custodians, delayed liquidation at a special meeting last August to try to find more value in the business.
The board first suggested liquidation in April last year, when restructuring plans aimed at returning the company to
profitability fell over after auditor RSM Prince resigned a day after NZF was forced to restate its first-half results
for a second time.
The reverse takeover plans had the backing of Nessock Custodians, which according to its annual report held 15.8 percent
of NZF's $18 million in capital notes.
The shares last traded in December 2013 at 1 cent, valuing the firm at $1.1 million.
(BusinessDesk)