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Eastern Hifi Gets Urgent Loan From Shareholder

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Dec 12 NZPA - NZAX-listed Eastern Hi Fi Group is raising $3 million via a rights issue because it is in urgent need of new capital to remain solvent.

James Urquhart, who owns 19.9 percent, is lending $1m to the company immediately to reduce an ASB bank facility and provide working capital.

This loan will convert to equity in the issue and is included in the $3m figure.

The rights issue, the terms of which are two shares for every one share currently held at 15 cents each, will be considered by shareholders at a special meeting in mid-January.

NZXR granted a waiver for the related party transaction.

One if its reasons was that Eastern Hi Fi needed the money to remain solvent and for purchasing stock for the Christmas period.

The company imports and sells audio visual equipment.

NZPA WGT pjg nb

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