Re-listed Zardah plans rights issue
Article Date: May 15 2001Zardah Separation, Ofex-traded specialist in separating water from solids in waste, is preparing a rights issue following a £70,000 fundraising underwritten by finance director Alan Styant, writes Robert Tyerman.
Shares in Zardah Separation, which were floated on the J P Jenkins market at 3p four years ago and had been suspended since February after abortive bid talks, came back on Ofex at 1.5p today. Chaired by broker Charles Dimpfl, the company, which lost £126,500 in the year to last September on turnover down 44 per cent at £1.9 million, has raised £70,000 through a private allotment of shares at 1p, a 33 per cent discount.
Finance director Alan Styant underwrote the allotment, which came with one warrant exercisable at 1p up to September 2003. Zardah says it will make an announcement about its planned rights issue on Tuesday, 22 May.
This is expected to be accompanied by news on tests being carried out by Southern Water on the Zardah system. Southern Water's views will clearly be crucial. If Zardah's scheme is acceptable to big water companies, its prospects will be transformed, though the details of any endorsement would clearly require close study.
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