RAPTIS SHARES BACK IN WEEKS: ANY TAKERS?
Written on the 13 November 2015 by Nick Nichols
TRADING in Raptis Group shares is expected to begin within two weeks after shareholders approved the move at the annual general meeting in Sydney this week.
However, it remains to be seen how many takers there will be for the company's stock as it gingerly heads for the boards with no assets and a proposed $25 million development to kickstart its fortunes.
The move will end a seven-year suspension for the Gold Coast developer, years after it emerged from a lengthy deed of company arrangement with creditors.
Chairman Jim Raptis has revealed little more at the AGM than he did at a shareholder meeting held last month to approve the issue of 40 million shares to Hanslow Holdings.
Hanslow is a company directed by Jim and Helen Raptis and which is providing $1.5 million in working capital to bring the company back to life. Hanslow has pumped about $6 million into supporting Raptis Group since 2009, including a successful stoush with the ATO, to bring it to this point.
This week's meeting also approved the adoption of the 2015 remunerations reports.
"The successful completion of these items of business now enables us to complete the requirements to apply for the company securities to resume quotation on the ASX," Jim Raptis told shareholders gathered at the office of Russell Bedford Chartered Accountants in Sydney.
"We anticipate resumption of trading within the next two weeks."
Raptis says the company plans to resume property development activity both on the Gold Coast and in Brisbane, with the first to be a townhouse project in Springwood on the south side of Brisbane.
"The development is subject to local authority approval," Raptis says.
The project will comprise 60 townhouses with an end value of $25 million. Construction is expected to start in early 2016.
Raptis estimates it will take less than 12 months to complete, although he has indicated that other projects may be developed in tandem during this period.
"It is an appropriate scale project to establish and rebuild steadily," he says.
"We will advise the market as soon as future projects are secured.
"I take this opportunity to personally thank all those who have enabled the company to come to this point on the verge of resuming operations."
"I appreciate that the creditors, shareholders and advisors have supported us and I look forward to the opportunity of rebuilding the company steadily to return value."
Raptis shares last traded at 40c in September 2008, although they are expected to slump sharply should any trading take place once they resume ASX listing.
According to the latest financial report, the company's has no assets and 102.8 million shares on issue. Hanslow controls 63.8 per cent of the company.
Raptis Group collapsed in 2008 after first hitting trouble during early-stage construction of Southport Central's third tower.
The web of inter-company finances revealed a shortfall of close to $1 billion by the company which at one stage owned the Sheraton Mirage, the Holiday Inn Surfers Paradise, the Gold Coast International (since renamed the QT), the now demolished Iluka building and plush offices atop Chevron Renaissance in Surfers Paradise.
Author: Nick Nichols