Picture: MICHAEL ETTERSHANK
Picture: MICHAEL ETTERSHANK

Imbalie Beauty, a penny stock that last traded at 2c after hitting a peak of 27c five years ago, informed shareholders on Tuesday that it proposed to sell its JSE listing to a geotechnical contractor, Wepex.

Imbalie was among the companies with February year-ends that failed to produce financial statements within the JSE’s time limit which expired last Thursday.

At 2c per share, Imbalie has a market cap of R28m.

Imbalie proposes to convert itself into a cash shell by selling its underlying cosmetic businesses, which include Placecol Fresh Beauty, Dream Nails Beauty, and Imbalie Beauty Training Academy.

For the reverse listing of Wepex to proceed, it needs to prove it has a net asset value of more than R30m and aftertax profit of more than R20m.

The proposed deal values Wepex at R108m.

Wepex said half its revenue came from work in Botswana and the other half from SA.

It provides geotechnical construction services to the mining sector, mostly working as a subcontractor to major construction companies.

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