Strathmore Accelerates CommSoft Payment
Acquires Additional 5% Option
Auckland – Wednesday, 2 February 2000 –Strathmore Group Limited (NZSE: SMR) today announced that it has accelerated payment of its $1 million convertible note to CommSoft Group Limited and has acquired an option to purchase an additional 5% of the company’s equity.
To date Strathmore has paid $700,000 against the note, originally scheduled for completion on 31 March 2000. A final payment of $300,000 is now scheduled for February 2000. Strathmore’s right to convert the note to equity on 31 July 2000 remains unchanged.
Strathmore will also acquire an option, exercisable at any time up to 29 February 2000, to purchase an additional 5% of CommSoft’s equity for $1 million, based on a company valuation of $20 million.
“CommSoft’s revenues and market share are growing more rapidly than forecast, driving the need for additional working capital,” says Strathmore Chairman, Phil Norman. “Our funding arrangements have been accelerated in recognition of this growth.”
“A further motive in bringing forward funding is to assist CommSoft to achieve, within the next six months, a primary listing on the Australian Stock Exchange, which has proved very supportive of New Zealand technology companies with international products and capabilities. As any ASX listing will include a priority entitlement for Strathmore shareholders to acquire CommSoft shares at the time of listing, we are entirely supportive of the proposal. We have adjusted our funding arrangements to accommodate the prospective listing, injecting capital in accordance with an updated cash forecast that reflects the higher costs and working capital requirements associated with the undertaking.”
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $11 million of shareholders funds. It targets Internet, e-commerce and information technology companies with potential to deliver accelerated growth in shareholder value by competing in global markets. It provides finance, strategic advice and a network of relationships to assist technology companies to migrate internationally. It also manages a high-tech incubator fund that enables smaller companies to grow to the point where they are ready for such a migration.
About CommSoft Group Limited
CommSoft is a telecommunications and Internet software company operating in New Zealand, Australia, Singapore and the United Kingdom. It has developed a range of business telephony solutions, including web browser-based applications which provide a range of inexpensive telephony management, cost allocation and tarrifing solutions for small to medium businesses. It has agreements in place with British Telecom and Panasonic to license its Internet enabled software for PABX systems throughout the UK and Europe.