Syft scrambles to reach $3m target
Cash-strapped Christchurch manufacturer Syft Technologies has cleared the $1 million minimum hurdle for its rights offer to proceed but has fallen short of its $3 million target and is now looking to make a private placement to raise more money.
Chief executive Doug Hastie said the company needed more than $1 million in additional capital to "really get it going". In July Syft, which makes gas analysis devices, asked its 600 shareholders to increase their investment in the troubled firm by subscribing to a rights offer to buy three new shares at two cents a share for every two shares they held in the company.
In the share offer prospectus, Syft's directors warned shareholders that an investment in the company was "speculative and involves a high degree of risk".
The company had to go to the underwriters of the rights offer, Syft directors Stephen Collins and Michael Hawkins, who had underwritten it up to $270,000, to reach the $1 million mark.
Now the company was looking at a private placement to raise additional capital, Hastie said. The goal was still to raise $3 million.
The company's gas analysis devices, called Voice 200, are used in medical research, air quality testing and to detect toxic chemicals in shipping containers.
Hastie said the company was talking to existing shareholders as well as some new potential investors who had shown interest. Those discussions would take place in about the next three weeks, he said.
The private placement must be completed within 60 days after the rights offer closing date which was August 3, according to the rights offer prospectus.