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Energy Mad on the block as future mulled

NZ Newswire logoNZ Newswire 13/03/2017 Paul McBeth

Efficient light bulb maker Energy Mad is up for sale as the company's board weighs up the future of the business.

The Christchurch-based company sought a trading halt on its shares on Monday, and now says the board is "currently pursuing a potential sale of the business" among "various options for the future of the company".

A sale would need shareholder approval, meaning it would have to convince NZX-owned fund manager SuperLife, which owns a 71.4 per cent stake .

"Energy Mad will make an announcement in the short term regarding this sale if it is to proceed," it said in a statement.

The company has struggled to make ends meet since listing on the NZX in 2011 and has relied on funding lines from SuperLife to keep operating.

Energy Mad lifted operating revenue 48 per cent to $3.7 million in the six months ended September 30 and its first-half operating loss shrank to $200,000 from $500,000 a year earlier.

The trading halt on the shares was lifted after the announcement.

The stock last traded at 2.4 cents, valuing the firm at $1.9 million. It raised $5 million selling shares for $1 each in its 2011 initial public offering.

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