20 October 2017
visit www.avoka.com

Earthport bids to raise £875,000 in working capital

26 January 2010  |  5061 views  |  0 foreign exchange rates on screen

UK payments group Earthport is looking to raise £875,000 in working capital through a placing of seven million shares at 12.5 pence each in a last-ditch bid to keep the firm afloat while it chases down an outstanding £3.25 million franchise payment from Zink Financial.

News of the placing cheered City investors, who marked up the company's shares by 10% to 15 pence at the start of trading.

Earthport's stock had come crashing down in December after it emerged that a £3.25 million downpayment on a franchise deal with Zink Financial to operate the company's money transfer system in Latin America and the Caribbean had failed to materialise.

Last week Earthport chief executive James Bergman quit the firm and the company issued a statement saying that it had been engaged in a "constructive dialogue" with the principal of Zink regarding receipt of the payment due on 21 December 2009.

In announcing the placement, the firm says that it "remains in constructive discussions with Zink, and the directors continue to be confident that the franchise fee will be received".

Update The placing was fully subscribed by mid-afternoon. Three Earthport executives participated in the placing, including chairman Mike Harrison who picked up 1.2 million shares, finance director Zafar Karim with 0.4 million shares and executive director Peter Chappell who signed up for 0.28 million shares.
KeywordsFINDEX

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Earthport CEO jumps ship as firm chases franchise payment

Earthport CEO jumps ship as firm chases franchise payment

20 January 2010  |  7137 views  |  0 comments
Earthport secures £3.25 million first-year franchise deal

Earthport secures £3.25 million first-year franchise deal

23 November 2009  |  5796 views  |  0 comments
Earthport FY net loss widens

Earthport FY net loss widens

20 October 2009  |  5879 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.capgemini.comvisit www.niceactimize.com

Top topics

Most viewed Most shared
satelliteGates Foundation backs Ripple collaboratio...
8398 views comments | 13 tweets | 10 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
8211 views comments | 21 tweets | 26 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7371 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
6749 views comments | 10 tweets | 21 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
6409 views comments | 14 tweets | 23 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job