Embattled Gold Coast dental group Smiles Inclusive inks $200k lifeline from former Brisbane dentist
Cash poor Gold Coast dental group Smiles Inclusive has borrowed $200,000 from a former Brisbane dentist as the embattled company struggles to stay afloat.
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CASH poor Gold Coast dental group Smiles Inclusive has borrowed $200,000 from a former Brisbane dentist as the embattled company struggles to stay afloat.
Smiles, which has had its shares suspended from trading on the ASX since March 2, announced the cash injection late yesterday afternoon.
It said a company linked to Dr Richard Holzgrefe, the co-founder of Brisbane-based BOH Dental Group, had agreed to a $200,000 unsecured loan to Smiles.
The interest rate is 10 per cent and there is a termination date of July 27 although this may be amended.
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Half of the loan has been set off against four million Smiles shares immediately exercised as options by Dr Holzgrefe’s entity at 2.5¢ per share.
Dr Holzgrefe, who has a Bachelor of Dental Science degree from the University of Queensland, co-founded BOH Dental Group in 1976.
In 1997 he left to pursue projects in the property and retirement sectors.
Smiles said in its last ASX update that it had just $145,060 in cash at the end of the March quarter.
The company recently faced a grilling from the ASX’s compliance team over how mistakes were made in its March cashflow report.
The original report stated it had positive cashflow of $500,000 but Smiles later revised this figure to negative cashflow of $614,000 following questions from the ASX.
Smiles said the mistakes were a result of “transposition and flow through errors” made when the original reports were lodged.
In the same ASX statement Smiles revealed that corporate regulator the Australian Securities and Investments Commission had said it intended to take court action over its failure to release the audited half-year accounts.
“ASIC have (sic) not granted an extension for SIL to lodge the accounts and have advised of their intention to submit an application to the court in respect of SIL’s default,” Smiles said.
The penalties for Smiles if it fails to comply with a court order can range from fines being imposed to an order to wind up the company.
Smiles CEO Michelle Aqualina said it is close to finalising its half-year accounts for release.
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