THE Zimbabwe Stock Exchange listed Willdale Limited has terminated its negotiations with a Chinese investor, the company has said.
By Business Reporter
According to reports, the company planned to lease out its factory for five years as it intended to suspend production due to mounting competition in the brick-making industry.
In a statement yesterday, Willdale said: “We advise that negotiations with a potential investor that were the subject of cautionary statements issued from June 2013 have been terminated.
“The board is now pursuing another refinancing initiative. Shareholders are therefore, advised to continue to exercise caution and to seek professional advice when dealing in the company’s shares expected.”
Willdale Limited recorded a loss of $613 585 during the six months to March 31, 2013, extending its loss position from the $516 991 incurred during the same period last year.
During the period under review, the company experienced production challenges due to shortages of working capital, breakdowns in fixed and mobile plants and plans were underway to raise funds to address these shortages.
The company said negotiations with a long-term financier to provide funding to refurbish its plant and acquire sufficient mobile equipment was at an advanced stage.
Willdale Limited is involved in the manufacture and sale of a range of clay bricks and related products, such as face-bricks — which include rustic face-bricks, smooth face bricks and brushed face-bricks — the ground solutions division offers solutions for pavements, driveways, walkways, patios, swimming pool surrounds and general hard landscaping areas, and the decorative building solutions segment offers decorative building materials.