The company says the cash raising is strategic, with the aim of reducing net debt. Cliff Brigstocke, CEO of Opus says, “As stated in our market update of November 7 non-core assets had been identified for disposal with the proceeds used to repay debt.”
It also says it is working ‘closely’ with its financier to ‘reset a finance package that provides ongoing financial versatility for the business’.
Two thirds of the cash, $7.2m, will come through the sale of its Singapore site, which Opus then plans to lease back.
Some $3.4m is coming via short term loans from backers Knox Investment and director Richard Celarc, with the loans due to be prepaid in March next year as equity. Both Knox and Celarc will receive interest at 15 per cent per annum, or 24 per cent if shareholders veto the equity conversion plan
The remaining $500,000 is coming from proceeds from the sale of land and buildings at the old McPherson’s site in Maryborough.
Opus has been impacted by Government cutbacks in print, and last year made a $1.8m loss.
* CanPrint, the Opus sheetfed printer in Canberra has installed and commissioned the Heidelberg Speedmaster XL 105 that was in the McPherson’s plant, and claims it now has the biggest fastest press in the ACT.
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