Change for Strathfield Group

After placing a trading halt on the securities of the Strathfield Group, its board has announced a proposed recapitalisation.

The proposed recapitalisation would only go through if the Strathfield Group met the following conditions; an immediate placement of 45 million Strathfield ordinary shares through Arthur Phillip Pty Ltd to interests associated with George Cheihk at an issue price of 4 cents per share to raise $1.8 million and a proposed and a proposed rights issue to Strathfield shareholders on the basis of three new share for every four shares held at an issue price of four cents per share to raise $10.35 million. It’s intended that each new share will have one free attaching option exercisable at eight cents per share on or before 30th August 2009. The proposed rights issue will be underwritten by Arthur Phillip. However this is also subject to the following conditions; financial diligence being conducted to the satisfaction of Arthur Phillip; three non-executive directors resigning from, and one nominee of Arthur Phillip being appointed to, the Strathfield Board on the signing of the underwriting agreement; and documentation and any shareholder or regulatory approvals, if required.  

If the conditions set out are followed, Strathfield will receive an equity injection of $12.15 million.

The Strathfield Group also announced the appointment of Warwick Mizkinian and George Cheihk as directors. Both come from different backgrounds; Warwick Mizikinian has an extensive background in wholesale Mobile telephony market both in Australia and US. He also developed a virtual mobile service provider model as the founder of m8 Telecom. George Cheihk is the CEO of Q.L.D Group, a Queensland property developer of residential subdivisions with core interests in the Brisbane Western Corridor.