Embattled sustainable water and power company Solco Ltd has witnessed the resignation of chief executive officer Dermot Patterson, only five months after his appointment to the role. Mr Patterson, following his resignation effective 25 August, will take up a senior executive position in the health services industry where he has over 30 years of international experience. Prior to joining Solco, Mr Patterson was chief executive of Medec Ltd and spent 20 years with Huntleigh Technology Ltd, a large UK-based international healthcare firm.On 7 August, directors of the company requested a suspension from trading while they undertook a process to recapitalise the company.The directors advised that the company had not been able to close the private placement of up to 8 million shares with international investment bank Gehard & Co Wertpapierhandelsbank AG because the company had traded below the placement price of 18 cents. Solco is also undertaking a further financial review of its business in light of its recently reported financial performance. In its financial update of the 28 July, the company expected an EBITDA loss for the full year ending June 2006 of $2.3 million on projected revenue of $15.8 million, while the estimated EBITDA loss for the second half year was expected to be in the order of $1.66 million on forecast revenues of $5.9 million. The company said the EBITDA loss in the second half reflected recent restructuring efforts to return Solco to a cash positive and profitable operating position. Solco has restructured its business into a Power Division with the national Choice Electrics solar power products distributors based in Brisbane and the Water Division based in Perth. Solco, prior to its suspension, was trading at 15.5 cents.
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