Last ditch bid to keep Earthport in business
UK payments company Earthport is looking to raise £875,000 in working capital in a last ditch bid to stay in business while it awaits the outstanding £3.25m it is owed by Zink Financial.
Earthport is proposing to raise the £875,000 through the placing of up to 7 million new ordinary shares at 12.5p each.
The company said directors are subscribing to 1.88 million shares. CEO James Bergman resigned from the international foreign exchange provider last week (see Loyalty story on January 21).
The company said there is still no movement on the outstanding non-refundable franchise fee of £3.25m due from Zink to operate Earthport’s money transfer system in Latin America and the Caribbean. The money had been due on December 21.
The company’s shares rose by 10% to £0.15 on news of the rescue bid.
Earthport said in a statement that it “remains in constructive discussions with Zink, and the directors continue to be confident that the franchise fee will be received.”