NZX rejects another Charlie's share placement

The New Zealand Exchange (NZX) has stopped juicemaker Charlie's making a second placement of 30 million new shares at a discount to its market price.

Charlie's, run by former All Black Marc Ellis and Stefan Lepionka, made a back door listing on the sharemarket on July 14 through a reverse takeover by listed shell company Spectrum Resources.

Spectrum bought Charlie's for $11.66 million by issuing 145.75 million shares at 8c each to Charlie's shareholders, including Mr Ellis and Mr Lepionka.

Shareholders also approved a private placement of 30 million shares at 10c to raise $3m to develop Charlie's distribution.

Managing director Mr Lepionka said because that placement was oversubscribed the company applied to the NZX to make another 30 million share placement at 10c.

"They have come back and said 'no' -- that is too much of a discount," he told NZPA.

The shares opened on the market at 15c, but today were trading around 11.5c.

Under listing rules, companies need NZX approval to issue shares at more than a 10 percent discount to the average market price.

NZX said that average market price was calculated from the average daily closing price over the previous 10 days. This had been calculated at 15c for Charlie's, representing a 33 percent discount.

Mr Lepionka said that while Charlie's was disappointed with NZX's decision, he was pleased with the company's reverse listing and investor interest.

"The company is well placed to carry out its plans with the $1.6m cash acquired from Spectrum Resources as part of the listing, the $3m raised in the recent oversubscribed private placement, and further funds anticipated to be raised on exercise of its warrants," he said.

- NZPA