Malaga-based Australian Waterwise Solutions Ltd, which owns the Hugall & Hoile reticulation business, aims to raise $2 million through a share issue to pay off creditors and the Tax Office, as well as for store refurbishments.
The company will issue 200 million shares at one cent each to raise the money, after what chairman Geoff Gander called "a challenging few months during which time a number of commercial issues ... have had to be faced and dealt with".
"The issues involve a range of items from the ongoing support of the company's bankers, through to the valuation of inventories, the unlikely recovery of unauthorised payments made to a former executive and the performance of the Turf & Irrigation chain of stores on the East Coast," he wrote, in the prospectus for the offer.
According to Mr Gander, the company is currently undertaking a strategic review of its Turf & Irrigation chain, as well as appointing a new general manager of its RainOne wholesale division, opening new stores in Subiaco, Balcatta and Claremont, and appointing Pitcher Partners to provide it with accounting and taxation services.
The offer will open on April 6, to close April 14
