Hyro to raise capital to pay off $2.3m tax bill
Digital marketing Hyro has announced a rights issue to enable the firm to raise capital to pay off a tax bill.
The company hopes to raise almost $4m, $2.26m of which will be used to pay off its debt to the Australian Tax Office.
The debt has built up as a result of Hyro, and its subsidiaries Fluoro and One Planet, going into voluntary administration in December last year.
According to a company statement posted on the Australian Security Exchange website, the rights issue aims to:
- strengthen the company’s balance sheet,
- remove perceived risk for existing clients when engaging Hyro to deliver services,
- improve Hyro’s ability to access capital through normal commercial channels.
Hyro has weathered an eventful few years, having closed its unprofitable New Zealand and China businesses, and seen its share price drop from a peak from a 2007 peak of 30c to $0.003 now.
I’m no financial guru, so let me get this straight:
They’re asking people to invest in a company that’s struggling to meet its obligations to the ATO?
Now that would be a speculative buy.
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OH DEAR!
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so the share price is .3 of a cent?? So they have lost 99.9% of value from the $30 high?
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I’m amazed they are still hanging in there.
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To clarify Logic, it was a 30 cents high ($0.30) in 2007, not $30. For a closer look at how Hyro’s share price has trended in recent years, check out this Google finance link:
http://www.google.com/finance?q=ASX:HYO
Cheers,
Robin – Mumbrella
OK so it was 30 cents, its now .3 of a cent, so its worth 1% of what is was????
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well – geepers, in dot com boom time (ie 2001) it was at $2.80!!!
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@Logic it reached $7.40+ in the dot com boom days when it was BMCMedia
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What they have done is actually a master stroke, considering there ATO obligation was all legacy Bill has managed to clear a roughly $11million obligation for about $2mill.
They have been released from around $30mill in debt for about $5mill over the last two years due to current managements ability to exploit opportunities.
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@Lateral – there certainly is a lot of stroking going on that’s certain.
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