IRG, which plans to become a listed shell company, recently sold its Tauranga advice business IRG BOP, which was previously Phillip King’s Ellerie Cornwall, to one of the advisers who worked there.
Brent King, managing director of IRG, said that two of the investment advisers from IRG Equity Investment Advisors will transfer to Forsyth Barr and clients will be encouraged to transfer their account to Forsyth Barr.
“The basis of the sale is an initial deposit with on-going payments based on performance,” he said.
IRG will continue to operate the residual of IRG Equity Investment Advisers, MoneyOnline and its media products using the remaining three advisers.
Meanwhile, the major shareholder of IRG, Malaysian-controlled GA Sego, has agreed to advance $750,000 to IRG as a bridging loan, which according to IRG will allow “financial stability” during the sell-down process.
IRG has sought and obtained a waiver from NZX on requirement to gain shareholder approval as it is a related party transaction.
Brent King said, “This is a very good outcome for the company as it will allow speedy resolution of outstanding issues. It will allow IRG to move positively to sell the residual assets and to seek an alternative business”.
The company expects to be able to make further announcements at the general meeting, which will be in about six weeks.
IRG reported a net loss of $1.14 million for the year ended March 31. Its shares last traded at 0.3c per share, giving it a market capitalisation of $1.56 million.
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