Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • TZ Limited Firms Up Convertible Notes Agreement 0 comments
    Nov 24, 2013 8:20 PM

    TZ Limited (ASX: TZL) has entered into formal agreements with major convertible note holder, QVT Fund LP and Quintessence Fund, that see TZ be free of debt and interest payments.

    This follows the letter of intent for the issue of 136,893,173 new ordinary shares in TZ to the funds in lieu of repayment of principal and interest on the convertible notes.

    The company plans to convene a shareholders meeting to seek the necessary shareholder approvals for Monday, 17 February 2014.

    Following its completion, the company will have no debt other than for day to day creditors.

    It will also be better positioned to take advantage of any operational opportunities.

    The conversion of the notes and accrued interest will result in the issue of 136,893,173 new shares worth $24,075,400.

    Analysis

    The conversion of the convertible notes removes the "overhang" on the share price, allowing the company to benefit from the traction that its core businesses have gained this year and is likely to build on in the coming year.

    TZ has forecast revenue growth of almost 300% for FY2014 to above $8M, a goal which has received firm backing from its revenue of $1.1 million in the September 2013 quarter, or about 17% higher than previous guidance.

    In addition, TZ provided guidance that its parcel locker and data centre infrastructure businesses could be operating profitably by the end of financial year 2014.

    Proactive Investors continues to value TZ Limited at between $0.16-$0.20 within the next 6-9 months.

    Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX "Small and Mid-cap" stocks with distribution in Australia, UK, North America and Hong Kong / China.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.