Clypex to make 2:5 cash issue

Press, 19 August 1985, Page 30

Clypex to make 2:5 cash issue

PA Wellington Clypex Resources, Ltd, has declared a two-for-five cash issue at 25c par, intending to pay off some debt and increase its investments stable. If only ordinary shareholders take up the issue, it will raise up to $2,599,000. But options holders get a chance to convert to ordinary shares so they can take the issue up. This could boost the funds raised to SSM if half the options holders opt to convert, and $7.4M on if all options holders and share holders take up the issue. The money will go to pay off some of Clypex’s existing borrowings, the chairman, Mr Bob Gunn, said after the annual meeting. But he said Clypex, restructured out of the ailing Clyde heavy-equipment group into a profitable investment company, was also looking at further investment opportunities. One of the possibilities being considered would take Clypex back into Clydes’s old territory, the motor industry — but more in a consulting role, he said.