IRG completes capital raising with 1.1 million sale, 'aggressively' placed for the future

Friday 4th September 2009

Investment Research Group, the investment advisory and brokerage firm, sold a further 1.1 million shares, completing its capital raising a day after Tony Falkenstein injected $400,000 into the business.

IRG, which resumed trading on the NZAX this week after being suspended last month for filing a late annual report, placed the shares with an existing shareholder at 2.25 cents apiece, raising about $25,000. Yesterday, Falkenstein’s Edwin Trust acquired 17.8 million shares, subject to shareholder approval.

Last month IRG’s bank granted a waiver to a covenant breach and confirmed it will continue its funding support for the company. At the time, managing director Brent King said the company aimed to raise about $500,000 to bolster its balance sheet. The shares, which trade infrequently, soared some 91% to 2 cents today, valuing the company at $1.18 million. They have tumbled 86% in the past 12 months, having traded at 7 cents last September.

“We’ve been surprised and are very pleased with the support from shareholders” since the bank accepted IRG’s definition of capital ratios in August, King told BusinessWire.

“We haven’t just stabilised, we’re aggressively placed” to take advantage of an expected correction in the markets, he said. IRG will look to take advantage of good deals when they arise, King said.

Businesswire.co.nz

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