Energy Mad get future funding
Christchurch-based eco-bulbs firm Energy Mad has secured a $2.5 million capital injection from one of its major shareholders.
The NZX-listed company announced today a $2.25m convertible bond from SuperLife Limited, who own a nearly 20 per cent stake in the company.
Energy Mad chief executive Paul Ravlich said the SuperLife Convertible Note was "a very useful means of funding Energy Mad's growth strategy".
"It gives us more flexibility compared to a capital raising, and we can use as much or as little of the facility as we need to progress".
Managing director Chris Mardon said the company had developed a new range of LED light bulbs, and wanted to be sure they could increase volumes and sustain stock.
"We're just making sure we're not constrained from a cash point of view from doing what we want to do."
SuperLife has provided several injections of capital to the company over the last year, including buying $2m of shares in early 2013.
Mardon said the company "appreciates SuperLife's ongoing support for our vision".
In a statement, SuperLife said, "We continue to believe in the strategic direction of Energy Mad and the progress it has made in laying the foundation for creating value for shareholders and consumers of its products.
"We were pleased to have the opportunity to provide funding that is targeted at its business growth strategy."
The convertible note has a term of three years, with an option for extension by one year.
In unaudited results announced mid-December 2013, Energy Mad delivered operating half-year revenues of $4 million, down from $4.5m for the September 2012 half-year.
SuperLife has 8.24 million shares in Energy Mad, a 19.13 per cent shareholding.