From today's "Around The Traps With The Ferret" Sydney - Friday - June 17: (RWE Australian Business News) - **************************
Long-suffering STRATHFIELD (SRA) shareholders are wrestling with the problem of whether it's worth increasing their investment in the company or whether it would be throwing good money after bad. Strathfield announced yet another recapitalisation yesterday, seeking $12.15 million with an immediate placement of 45 million shares to interests associated with George Cheihk at 4c a share (raising $1.8 million) and a 3-for-4 rights issue at 4c a share to shareholders (seeking $10.35 million). The sharemarket obviously reckons it's worth a punt because Strathfield rose 0.7c to 4.6c before closing at 4.2c. Shareholders who participated in the last recapitalisation in late 2003, via a 4-for-3 issue at 10c a share, would be muttering under their breath over the company's latest travails. Particularly now that the number of shares on issue is going to double again.
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As part of the recapitalisation at Strathfield, Warwick Mirzikinian and George Cheihk will join the board. Mr Mirzikinian has been involved in the wholesale mobile telephony market while Mr Cheihk is a Queensland property developer. Strathfield's press release said Mr Cheikh was familiar to the southeast Queensland community through his "tiresome" efforts in charities and sponsorships.
SRA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held