GFL
22/11/2012 13:25
RIGHT
REL: 1325 HRS GFNZ Group Limited
RIGHT: GFL: Geneva One For Four Rights Issue Settles in Full
Media Release 22 November 2012
GENEVA FINANCE ANNOUNCES ITS ONE FOR FOUR RIGHTS ISSUE SETTLES IN FULL
NZAX-listed auto loan provider GFNZ Group Ltd (Geneva) having successfully
placed $1.2m of ordinary shares to Federal Pacific Group Limited (FedPac) in
March 2012, advises that its 1:4 rights issue, raising a further $1.5million
of equity has settled.
This equity placement, further strengthens Geneva's balance sheet and
represents another milestone in the company's development, which over the
last four years, has seen Geneva work hard to reposition and rebuild its
operations. Other significant milestones include:
o Repayment of more than $133.3m of debt funding to investors (including
interest of 11.0% per annum to public debenture holders);
o Reduced group operating costs, since November 07, by more than $29m per
annum;
o Acquisition of the Quest Insurance and Stellar debt collection operations
to complement core financing activities;
o Implementation of online internet-based scorecards and loan application
systems for introducers;
o Restructure of its operations to allow the new business model to focus on a
market segment that offers attractive yields that carry considerably less
risk.
Geneva Managing Director David O'Connell says:
"The $1.2m placement in March 2012, and the $1.5m raised under this issue
have collectively increased Geneva's net shareholders funds by 28%. This is
another significant step forward. It will assist the company source the new
funding lines, core to expanding the new business model while maintaining our
scheduled debt repayment program."
Under the rights issue Geneva has issued a further 56.2 million ordinary
shares, of which 357 small shareholders were allocated 6.6m on the 19th
November. Fedpac were allocated the remaining 49.6m shares today, raising
it's total stake in Geneva to 33.7%.
Each of the shareholders (including Fedpac) who acquired shares under the
rights issue, has also been allocated two options (for every three shares
acquired) to subscribe for new shares, at 8.00 cents per share within a 30
day period commencing three years after their allocation date.
The rights issue and Fedpac's underwrite agreement were approved at the
shareholders meeting held on 6th November 2012.
ends
About Geneva
Geneva is a New Zealand-owned finance company that provides finance and
financial services to the consumer credit and small to medium business
markets. Geneva commenced business on 7 October 2002. Geneva's loans are
originated through three distribution channels (Direct, Broker and Dealer),
processed by the central sales desk then administered through a national
operations centre located at Mt Wellington, Auckland.
The company borrows money by the issue of debenture stock. It also has a
banking facility with BOS International (Australia) Limited.
Geneva (GFL) is listed on the NZAX. Following the rights issue, there are
280,872,249 issued shares held by 2,629 investors.
About Federal Pacific
FedPac's operations throughout the Pacific region include investments in
Banking, Personal and Business Finance, Money Transfer and Foreign Exchange
Trading. The company was incorporated in 1993 and is based in Auckland, New
Zealand.
Alexander Communications
Kate Alexander
+64 (0)27 244 6094
[email protected]
For further information:
End CA:00230102 For:GFL Type:RIGHT Time:2012-11-22 13:25:13
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