- Oldfields’ share price is rocketing over 60 per cent today after revealing it will sell equivalent to 51 per cent of its shares to EQM Holdings
- Once the company has bought in it will raise roughly $5.1 million – this will be used to payoff debt and provide working capital
- Also announced today, Oldfields has reported a 114.7 per cent profit loss during the 2019 financial year falling from $1.55 million in the previous year
- EQM Holdings will buy into the company at six cents per share, which is what Oldfield’s share price is trading for today
Scaffolding maker Oldfields has seen its share price skyrocket 66.67 per cent today after announcing it will sell equivalent to 51 per cent of its shares to EQM Holdings.
EQM Holdings will buy into the company at six cents apiece, raising roughly $5.1 million. Oldfields detailed to shareholders it will work to re-shape its board so the majority of Directors are from EQM Holdings.
However, shareholders still have a say in whether the shares sale goes ahead. At Oldfields’ upcoming annual general meeting the placement can’t pass until it receives shareholder approval.
The raised funds will be used to payoff outstanding debts and supply finances for day-to-day operations.
As it stands, Oldfields has approximately $1.5 million in outstanding balance which it owes to Westpac.
Additionally, Oldfields has released its 2019 financial year report. Revenue saw a 4.4 per cent dip and now sits at $24.76 million.
Profits took a dive going from $1.55 million during the 2018 financial year to a loss of $228,000 during the 2019 financial year.
In afternoon trade, Oldfields’ share price is currently sitting at six cents per share, following the huge 66.67 per cent boost.