Engin: We've blown $26m; we got it wrong, now give us $8.4m to keep afloat
25 February 2008
Having blown the $26 million that Seven Network pumped in when it took a 33 percent stake in 2006, VoIP provider Engin has terminated its ambitious triple play intentions and is asking shareholders for another $8.4m just to keep it in business.
The company has announced a rights issue to raise $8.4 million by offering 281 million shares at three cents each, a 37.5 percent discount on their closing price on 22 February. And it has providedi its long suffering shareholders with remarkably little information on what it intends to do with their money.
Just about the only information in the 34 page prospectus is contained in chairman Ian Smith's letter in which he says the money is needed to "address the immediate cash burn issue; to provide the funding needed to complete the strategic restructure of the business [and] provide capital to grow the subscriber base in the broadband telephony environment and allow the business to consider deploying additional complementary products such as broadband and TiVo and provide ongoing working capital."
Having blown the $26 million that Seven Network pumped in when it took a 33 percent stake in 2006, VoIP provider Engin has terminated its ambitious triple play intentions and is asking shareholders for another $8.4m just to keep it in business.
The company has announced a rights issue to raise $8.4 million by offering 281 million shares at three cents each, a 37.5 percent discount on their closing price on 22 February. And it has providedi its long suffering shareholders with remarkably little information on what it intends to do with their money.
Just about the only information in the 34 page prospectus is contained in chairman Ian Smith's letter in which he says the money is needed to "address the immediate cash burn issue; to provide the funding needed to complete the strategic restructure of the business [and] provide capital to grow the subscriber base in the broadband telephony environment and allow the business to consider deploying additional complementary products such as broadband and TiVo and provide ongoing working capital."
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