Robe Australia has commenced the first stage of rebuilding the company by announcing a non-renounceable rights issue to existing shareholders.
The rights issue is available at a price of 1.10 cents per share on the basis of one new share for every one share held.
Under the rights issue, the listed financial services firm will issue more than 169.5 million new ordinary shares to raise more than $1.86 million before expenses.
Robe intends to use the money raised from the sale of shares to explore new investment options.
"As Robe is not currently carrying on any business, funds raised from this rights issue will be used to enable Robe to undertake a number of due diligence programs with a view to identifying appropriate investment opportunities and to supplement the working capital reserves of Robe," Robe Australia chairman Peter Reilly said.
"This is essentially the first stage of Robe's restructure as it moves to identify and assess an appropriate investment for the company."
In late 2009, Robe announced it had sold all of its operating businesses following a tumultuous year for the group.
The firm sold its stockbroking arm Tolhurst Limited, its wealth management business Community and Corporate Financial Services and completed the management buyout of corporate advisory activities undertaken by Tolhurst InterFinancial Limited.
For the year ended 30 June 2009, the Robe board wrote off all intangible assets totalling about $43.3 million and reported a loss of about $41.1 million.
