7th Feb 2020 13:53
(Alliance News) - Investment company Gunsynd PLC on Friday said that a financially-constrained investee in Brazil may undertake a discounted equity issue to stay in operation or even enter administration.
Brazil Tungsten Holdings Ltd, which Gunsynd has a 6.2% stake in, may turn to a rights issue which would in turn dilute the investment company's stake in the firm.
BTHL may also place itself in administration, which would likely wipe out Gunsynd's stake.
Gunsynd Chair Hamish Harris said: "This is a legacy asset that has been written down over previous periods. Gunsynd continues to concentrate on its core investments on which an update will be made in the near future."
As at July 31, BTHL represented 17% of Gunsynd's net asset value.
Gunsynd shares were 7.5% lower at 0.01 pence each in London on Friday afternoon.
By Eric Cunha; [email protected]
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