Telco company CommodiTel Ltd is in the midst of a board restructure and has proposed a placement to raise $600,000 for working capital purposes.
Loss-making telco company CommodiTel Ltd is in the midst of a board restructure and has proposed a placement to raise $600,000 for working capital purposes. The company said investor Charles Morgan and lawyer Roger Steinepreis had been appointed to the board, while George Gelavis has resigned as the managing director and David Riekie and David Paganin have resigned as chairman and director respectively. Executive director David Sweet will be responsible for the day to day operational matters of the company while Mr Gelavis will remain as a consultant.
Mr Steinepreis and Mr Paganin are partners of Perth-based law firm Steinepreis Paganin, while Mr Riekie is an executive director of Grange Consulting. The $600,000 capital raising will result from the placement of 60 million shares at 1 cent each and will be issued with an option exerciseable at 1.5 cents each on or before 30 June 2009. Mr Morgan will subscribe for 20 million shares as part of his appointment to the board. The company also announced that a notice of requisition received by the company from investor Chris Singleton's The Toad Group Pty Ltd on 16th February had been withdrawn. The Toad Group's requisition sought the appointment of Charles Morgan and Ignacio Mas as company directors and the removal of Messrs Riekie and Paganin as directors.
Commoditel's latest quarterly report for the December quarter said it incurred a net cash outflow of $494,000 and had cash reserves of just $489,000.
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