Viento reviews funding

Five weeks after announcing a $7.2 million rights issue, and three weeks after getting a loan from two of its directors, Viento Group has called a trading halt on its shares while it considers funding options.

The trading halt also follows the awarding of two substantial new contracts during the past month, from BC Iron and Rio Tinto.

In what has been a busy period for the company, Viento also appointed former Maca boss Doug Grewar as its managing director from the end of March.

Mr Grewar joined the contractor after it reported a net loss of $14.5 million for the half year to December, primarily due to one loss-making contract by its HVLV subsidiary.

The $7.2 million rights issue, announced in early March, was pitched at an issue price of 3 cents.

Patersons Securities was appointed as lead manager and Viento said at the time it was in negotiations with Patersons to potentially underwrite the rights issue up to at least $6 million.

Viento shares are currently trading at 3.6 cents, having traded above 5 cents earlier this month.

The purpose of the rights issue was to provide working capital and reduce debt.

Early this month, the company said directors Ray Munro and John Silverthorne had agreed to lend it $2 million at an interest rate of 10 per cent per annum.