Another bad week for finance companies

Finance company investors endured another stretch of rocky road this week, with more losses, some companies failing to comply with listing rules and a director fighting to hang on to his money.

Restructured Geneva Finance ended its debut week on the sharemarket with its shares at less than a third of their issue value.

The shares were untraded on their first day on the NZAX board on Tuesday, but closed at 13c on Wednesday and slumped 23 per cent on Thursday to just under 10c.

The stock ended the week at 11c, valuing the company at just under $7.7 million.

Investors had agreed to convert 15 per cent of the $98.4 million in debenture funds and $11.5 million owed to note holders into new shares at a rate of one share for 36.49c. Geneva would repay the balance of the money by instalments over 4 1/2 years for debenture holders and 5 1/2 years for note holders.

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