An independent expert has recommended shareholders in Energy Mad vote in favour of various funding arrangements which could lead to SuperLife, now owned by NZX, owning nearly 90 percent.
Shares in Energy Mad, which designs, manufactures and sells energy efficient light bulbs, were floated at $1 each in March 2011 and they closed on Tuesday at just 9 cents.
Energy Mad has posted losses ever since its float.
Simmons Corporate Finance said Energy Mad needed the $2.534 million raised from two convertible notes issues to SuperLife in February and November last year to fund its operations.
If shareholders do not approve these note issues, the company will have to repay the money and it will have to raise more capital to do so.
Simmons said the proposed rights issue, which SuperLife would partly underwrite, aimed to raise just over $2 million to be used to strengthen Energy Mad's financial position and to fund its growth strategy.
It said the company was worth negative $200,000 at the end of September.
Simmons said Energy Mad would be able to operate without the new capital but would not have the equity the board considered prudent.