Shares in Pro-Pac have gone into a trading halt, with the company due to make a major announcement imminently. The annual results presentation, due on 31 August, has been postponed.
According to the AFR, the company is seeking a $50m cash injection, with reports saying it is talking to banks and brokers over a deal to reset its capital structure. The company's market capitalisation currently sits at around $52m.
Pro-Pac shares collapsed by 90 per cent in December, falling from $18 to $1.79, and have since drifted down to 55 cents. It sold its Rigids business four months ago to US giant Tricor Braun for $56m, using the money to reduce its debt from $82m to $21m.
Pro-Pac Group revenue for the first half to December 31 was down 12 per cent at $31.8m, with profit before tax down by 60 per cent, or $1.8m, at $1.2m compared to $3m in same period in the prior year.
At the time of first publishing the story, PKN indavertently published an image of former CEO Tim Welsh. He stepped down as MD & CEO effective 18 July. We apologise for any confusion caused.
