MELBOURNE: A decision is pending on Biron Capital's attempts to buy a slice of listed group Mercury Brands.
In a statement to the Australian Securities Exchange yesterday (August 31), the listed wholesale group said Biron had provided copies of the letter of credit and bank guarantee documentation submitted to its bankers to underwrite their proposed investment.
The group's application is currently under review.
If approved the move will result in a capital injection of $2 million-plus to Mercury Brand coffers through the sale of 175 million shares and 52 million options.
At the time the idea was mooted back in July, company chairman Michael Abela told shareholders Biron Capital brought "substantial experience and skills" in the fashion industry.
"[They] will provide considerable impetus to grow Mercury Brands Ltd and increase shareholder value."
Mercury Brands said in its statement to the ASX that it was confident the placement would succeed - largely because of an accompanying report which concluded the offer was "fair and reasonable".
Labels in the Mercury Brands stable include Kangol, Jimmie Jams, French Kitty and Crusty Demons.