Faritec has abandoned a plan to raise funds through a partially-underwritten rights offer detailed last month, but is now discussing a R30-million investment in the company by Tabara Investments.

In March, the company put forward a scheme whereby Shoden Data Systems and some members of the management team would underwrite R30-million of a R60-million rights offer, and ceritors would be asked to either convert their debt to Faritec equity or compromise their debt.
The various parties have now agreed not to participate with that scheme, but are proceeding with the new investment by Tabara and the issue of shares for cash.
In terms of the proposed deal between Faritec Enterprise Solutions and its creditors, unsecured creditors will be issued one ordinary Faritec share at a price of 1 cent for each 1 cent of debt they are owed by Faritec Enterprise Solutions.
In a statement, Faritec says that its working capital remains under pressure.
"In addition to the raising of additional funding from the Management Consortium and Tabara and the scheme of arrangement with unsecured creditors, management has made significant advances in restructuring the company. including in relation to the disposal of non-core assets, to address the working capital pressure," the statement reads.
It adds that shareholders shoudl continue to exercise caution in dealing with Faritec shares.