Directors of recovering weight loss business Metabolism Health Limited are on the verge of lodging a prospectus with the Australian Securities and Investments Commission to raise between $1.5 million and $1.7 million to re-establish the business.
Shareholders have approved the plan to hire Calchek, the company that supplied some of the machinery the old Metabolism Health business was using for its weight loss business, to operate the new venture.
According to ASIC records Calchek has only Jonathon Hanlin as a director and boasts DK Lillee Promotions, a business linked to former Australian test cricket star Dennis Lillee, as a shareholder.
Metabolism Health, which fell into administration earlier this year, along with its subsidiary The Metabolism Centre, was rescued by Ascent Capital.
The directors of Ascent Capital, David Steinepreis, Gary Steinepreis and Hugh Warner have decided to continue the business, starting with one store in Subiaco.
They put $185,000 into a deed of company arrangement to free MHL from its administration.
That money was used to buy equipment from The Metabolism Centre – providing the bulk of the funds TMC creditors are likely to receive – to get the Subiaco centre operational.
The Subiaco business opened its doors a couple of weeks ago and is in the process of getting its databases and equipment up to speed.
Metabolism Health shareholders have also approved the company’s proposal to change its name to M Health Ltd.
Mr Warner told WA Business News Mr Hanlin’s business had been retained because of its expertise with the equipment, primarily calorometers, used in the business.
He said the fund raising would be used to get the business back on its feet and give it the capacity to expand.
"It will also provide us with some working capital and cover the costs associated with running the company," Mr Warner said.
"We want to get the Subiaco centre running properly."
So what of the original Metabolism Health directors Jim Cowling, David John and John Ohayon?
According to Australian Stock Exchange records Mr Cowling holds about 2.4 per cent of the 55 million MHL shares on issue. Mr Ohayon holds about 1.1 per cent and Mr John’s wife, Erica John, holds 1.2 per cent.
At the initial public offer price of 20 cents a share those holdings would have been worth $269,525.20, $122,209.20 and $133,333.40 respectively.
At a nominal 1-cent-a-share price for MHL shares being suggested, those holdings would now be worth $13,476.26, $6,110 and $6,666.67 respectively.
Mr Warner said Mr Cowling, who was also behind BC the Body Club, and Mr Ohayon would only continue as shareholders in the business.
However, he said, Mr John had been retained as a consultant to Calchek, which means he is a consultant to Metabolism Health.
