Troubled JSE-listed technology group Faritec continues to teeter on the edge. It has scrapped a plan to raise much-needed additional working capital through a partially underwritten rights offer.
Instead, it has proposed raising R30m from management and a company called Tabara Investments. It also plans to convert money owed to creditors to equity and sell some noncore investments.
In a statement issued to shareholders via the JSE’s Sens news service, Faritec says unsecured creditors in the Faritec Enterprise Solutions business will be issued one ordinary Faritec share at 1c each for each 1c of debt they are owed.
The company says its working capital “remains under pressure”. The turnaround is being led by CEO Fanie van Rensburg (pictured), who could not be reached for comment on Monday morning.
But it says management has made “significant advances in restructuring the company, including in relation to the disposal of noncore assets to address the working capital pressure”.
Faritec’s share price was trading unchanged at 3c at lunchtime on Monday. — Staff reporter, TechCentral
See also: Faritec creditors may lose their shirts