By PETER GRIFFIN IT writer
JBWere's private equity fund will inject up to $2 million into listed payment terminals company Cadmus Technologies over the next year in a deal that will hinge on Cadmus' overseas success.
The fund will initially take an 8.85 per cent stake in Cadmus, buying 15.4 million
shares at 6.5c, raising $1 million for Cadmus.
JBWere then has the option of raising its stake to 13.8 per cent, injecting a further $1 million through the purchase of 10 million shares at 10c each.
Cadmus shares closed on Friday up 1c to 9.5c.
That second round of funding will depend on Cadmus' performance, as measured by its earnings before interest, tax, depreciation and amortisation (ebitda).
Managing director Ian Bailey said the company still had to finalise an ebitda target with JBWere, but it would be substantially higher than Cadmus' ebitda result for the year ended June 30.
"Next year we expect ebitda to be significant because of the international orders we hold," Bailey said.
"When we wrote off all our goodwill we said revenue was 275 per cent above the same time last year."
If Cadmus does not make its target, a call option gives JBWere the option of buying 12.5 million shares at 8c a share, raising the same amount of money but receiving the shares at a lower price.
Cadmus last week reported a loss of $18 million, largely due to a $15.6 million writedown in the value of its technology.
Bailey said the company had $7 million in pre-placed orders, and overheads in the company's Australian and Asian operations were not set to increase.
