23 Mar 2012

BLIS Technologies seeks extra capital

7:51 am on 23 March 2012

BLIS Technologies says it could run out of money in the next financial year, and it's seeking extra capital.

The listed company expects an operational loss of $1.9 million in the year to the end of March, after its ingredient sales suffered due to changes in its global distribution arrangements, and a change in strategy by its then largest US customer.

Looking ahead, the company expects to record a deficit of $800,000 in the next financial year, which would wipe out its cash reserves.

A review by Murray and Co has led the company's board to commission the investment bank to seek more capital, while it's cancelled a dividend payment due to May, and will instead give shares to investors.