- SaaS business Reffind (RFN) has placed its shares in a trading halt as it gets ready to execute a capital raise
- Shareholders will have to wait until Friday, November 27 to find out more details about the raise, which is the last day the trading halt is in effect
- More recently, the tech stock has been focused on its Loyall solution after the U.S. based Loyall Corporation went bankrupt
- Reffind estimated in its recent annual report that its investment into Loyall has cost them over $3 million in losses
- The company had joined a consortium to bid for the Loyall assets, but another company appears to have won the bidding war
- This means Reffind will instead work with the new owner to potentially buy a 25 per cent stake in the vehicle which owns Loyall
- Before today’s trading halt, shares in RFN were trading at 0.2 cents each
Reffind (RFN) has placed its shares in a trading halt as it gets ready to execute a capital raise.
RFN shareholders will have to wait until Friday, November 27 to find out more details about the raise.
That’s the last day the trading halt remains in effect, however, the SaaS business has the option to release the capital raise details early.
Reffind’s focus as of late has been on its Loyall soultion, however, the program has hit a number of issues including bankruptcy.
The U.S. based Loyall Corporation went bankrupt earlier this year and now a court in North America has approved for the asset to be sold off.
In a recent annual report, Reffind estimated that its investment into Loyall has cost them around $3.1 million in losses.
The company’s final loss for the 2020 financial year totalled $4.7 million, including the Loyall write down.
Meantime, in a bid to keep the asset, RFN joined a consortium of others to bid on the Loyall Corporation.
However, the move appears to have been unsuccessful as a company called Hayaat Global has emerged as the highest bidder.
Reffind is now working with Hayaat to potentially buy a 25 per cent stake in the vehicle, which looks likely to own Loyall in the future.
In a statement, the company said it “sees its potential position as an investor under the stewardship of Hayaat and their team, rather than an operator of the Loyyal business, as a preferred position to be in.”
Before today’s trading halt, shares in RFN were trading at 0.2 cents each on November 24.