Struggling Pembury says investors are keen to provide funding
Board to consider bids after receiving two formal offers for an equity investment
Pembury Lifestyle Group, whose auditors raised questions about its survival in May, says investors have made offers to provide it with additional funding.
“The company has received two formal offers for an equity investment to fund the growth and expansion aspirations of the company, and/or a convertible loan both containing a commitment to raise additional property funding,” the group said.
Pembury had also been approached by several other parties “with whom discussions are in different stages”.
“The board of directors will consider the offers in the following week, after which a further announcement will be made.”
In June, Pembury said it would offload its retirement villages business so it could focus on private education. The board, led by CEO Andrew McLachlan, was “evaluating various options to dispose of the individual villages”.
This came after the group’s delayed financial results for the year to December showed a net loss of R40.7m. Its current liabilities of R57.2m exceeded its current assets of R5.3m, said its auditor, Moore Stephens FRRS.
Moore Stephens said at the time “a material uncertainty exists that may cast significant doubt on the group and company’s ability to continue as a going concern”.