6 May 2013

Ecoya shareholder plans to exercise warrants

8:14 am on 6 May 2013

The major shareholder of skin care and candle firm Ecoya plans to exercise its warrants and will pay $1 a share, though the current market price is 88 cents.

The Business Bakery, which owns 30.06 million shares or 49.3% of the company, owns 720,653 warrants exerciseable on 15 June.

Ecoya chairman and founder Geoff Ross, also one of the Business Bakery's owners, says the shares are still good value.

Ecoya has said it expects to report operating earnings of more than $1.1 million for the year ended March and that 2014 earnings will be more than $2 million.

Ecoya has advised other holders who collectively own more than 1.8 million warrants that they can either exercise them or try to sell the warrants on the stock exchange. The warrants last sold on 11 April at 1.5 cents each.

If not sold or exercised, the warrants will lapse and have no value after 15 June.

If all warrants were exercised, Ecoya would receive nearly $2.6 million in fresh capital.