Rubber glove maker Voltage IP is still chasing investor for promised cash
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Voltage IP has failed to raise a promised $4 million from a Malaysian strategic investor.
Endless Earnings Sdn Bhd didn’t make the payment by the end of December, and therefore didn’t receive the 80 million shares they were supposed to get in return.
The rubber glove maker (ASX:VIP) told investors their erstwhile investor did pay them about $1.4 million and a creditor $496,000 — both in exchange for shares priced at 5c.
Endless Earnings has also promised in writing that it’ll pay $2 million by February 28.
The Malaysian investor was supposed to pay $2 million as part of a share placement and $2 million as part of a convertible note by the end of November, which was when shareholders approved the issue of shares to it.
But they didn’t pay — and Endless Earnings hasn’t volunteered any reason for the delay, company secretary Andrew Metcalfe told Stockhead.
They have been chasing the company all month, Mr Metcalfe said.
“We were unable to get confirmation from them as to when they were going to provide us with the information [about payment].”
“The directors here in Australia have been pressing for the information for many days… the information just wasn’t forthcoming.”
He says they have faith Endless Earnings will come through with the final $2 million, since they have delivered almost all of the first payment.
Voltage IP began this round of fundraising in May, but Mr Metcalfe says it hasn’t put pressure on the company.
“It hasn’t been that bad, the whole purpose was to really fund the expansion of our manufacturing lines in Malaysia,” he said.
“The company continues to operate and make sales with its current manufacturing lines, but the additional capital was to advance the current manufacturing lines from two to approximately six. It really just to meet increased demand.”