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Announcements |
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Announcements |
Friday, 13 October 2000
Strathmore announces $2.7 million after tax full year result
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today reported a $2.7 million profit after tax for the year to July 31 and released its preliminary full year announcement to the New Zealand Stock Exchange.
This compared with a $2.0 million loss in the previous year.
In making this announcement, Executive Chairman Phil Norman said the result was particularly pleasing given the early stage in the development of Strathmore’s investments.
"Strathmore has made nine investments since September last year, all of which are at different steps in their maturity to globally scaleable, IT businesses. At this stage our venture capital business is still predominantly in an investment phase which would typically be profit-neutral or loss making. We are therefore especially pleased to be reporting a $2.7 million profit in our first report to shareholders," Mr Norman said.
This early profitability can be attributed to the trading performance of CommSoft Group, the partial sale of Strathmore’s investment in CommSoft and the sale of Wellington Drive Technologies.
Mr Norman noted that "In preparing the accounts, we have taken a conservative approach to valuing our investments, based on observed fair values in public markets where they exist or otherwise at the lesser of cost or recoverable value. However, investors who will want to estimate the market value of the total portfolio will need considerably more information than is contained in the traditional financial statements."
Strathmore recognizes the difficulty investors face in understanding all of its businesses and is committed to providing substantially more information on its investment portfolio through the Annual Report, which is to be released in late October, and through release of detailed research to the market and investors in subsequent months.
Mr Norman said the holding in CommSoft was typical of Strathmore’s business model; to secure promising New Zealand and Australian IT businesses with the potential through financial and intellectual capital to drive growth internationally. Strathmore’s core skills revolve around stimulating value in technology companies with the potential to deliver products to a global market.
Strathmore ended the year a significantly more substantial company than it began, with total equity growing nearly ten-fold from $3.5 million to $33.2 million, said Strathmore Chief Financial Officer Peter Saunders.
"The Company is an order of magnitude bigger and this growth has been due as much to the growth in the value of its investments as it has been to the capital raising we undertook," Mr Saunders said.
"This is an excellent result for shareholders, Mr Saunders said, " We raised $16 million during the year, returned $12.5 million by way of the share buyback and still have a $33 million company at the end of the year."
After completion of the buyback, half of that $33 million value is represented by Strathmore’s most mature investment, the 16 per cent holding in CommSoft. This investment had been acquired at a cost of $2.9 million.
Strathmore also secured for its investors the lion’s share of the public stock offered in the CommSoft listing.
While continuing to work with its investee companies, Strathmore is continuing to assess new investment opportunities within its market focus. "Much of our current success has been from the quality of the early investments and rigorously following and refining through experience our business model," Mr Norman said.
"We started life equally interested to be an inbound and outbound investor. That is to say the company would invest both in Australasian companies that had potential to grow into other regions, and in companies based in other areas that would seek to create businesses to sell their products in our part of the world."
"We have refined our business model to concentrate our resources on outbound investment – a decision vindicated by the success of the CommSoft listing in September, and a decision we believe offers the greatest potential to enhance shareholder value," Mr Norman said. "Fortunately, our specialisation means we continue to see strong deal flow".
The company also reported earnings per share of 2 cents, compared with a loss of 9 cents per share the previous year. Current reported net asset per share are 16 cents.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ30 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Peter Saunders, Chief Financial Officer, Strathmore Group Limited
Tel E-mail :
Michael Bartrom, General Manager, Botica Conroy & Associates
Tel , E-mail :
Tuesday, 8 August 2000
Strathmore announces CommSoft entitlement for its shareholders and clarifies terms of Buy Back
Strathmore Group Limited (NZSE: SMR) has offered to buy back 15% of its shares in a deal that would see shareholders receive one share in the ASX listing company CommSoft for every 4.25 Strathmore shares they sell.
Strathmore said that following the decision to proceed with CommSoft’s Australian stock exchange listing and the lodgement of a prospectus for an $A17 million issue with the Australian Securities and Investment Commission, it was now appropriate to fully inform Strathmore shareholders regarding the buy back and other entitlements.
Strathmore today made the following key announcements:
Preferential entitlement to CommSoft shares
Strathmore referred shareholders to the offer in the CommSoft prospectus under which Strathmore shareholders will be granted a preferential entitlement to subscribe for CommSoft shares in the IPO. Under the terms of the entitlement, all Strathmore shareholders receive a minimum entitlement to subscribe for 500 CommSoft shares as part of a right to subscribe for CommSoft shares at a rate of one CommSoft share for every 75 Strathmore shares they hold.
Strathmore also referred shareholders to the offer by New Zealand Funds Management to buy the entitlement of those public shareholders not wanting to exercise their right to purchase CommSoft shares. New Zealand Funds Management will pay $A0.11 a share for any entitlement Strathmore’s public shareholders’ elect not to take up. Documentation on how to accept this offer will be contained in the prospectus.
Strathmore Executive Chairman Phil Norman said the preferential entitlement had been arranged with CommSoft and was a tangible way of rewarding Strathmore shareholders for their support.
"Strathmore is delighted the CommSoft listing will occur soon and is particularly pleased that a preferential offer will be made to Strathmore shareholders to subscribe for shares.
"The terms of the offer, taken alongside the offer from New Zealand Funds Management, mean shareholders will receive at least $A0.11 per share for their entitlement," he said.
Shareholders on the Strathmore register on August 11 will be able to participate in the entitlement to CommSoft shares.
Details of the CommSoft offer are set out in the prospectus which will be available on the CommSoft web site – www.commsoftgroup.com. The IPO is to open on August 15 and the listing date is expected to be September 13. All Strathmore shareholders will receive a CommSoft prospectus which will include details of their preferential entitlement.
The offers of the securities will be made in, or accompanied by, a copy of the Prospectus. Anyone wishing to acquire the securities will need to complete the application form that will be in or will accompany the Prospectus.
Strathmore share buyback terms
Strathmore Directors also announced that shareholders participating in the buyback will receive one $A1.10 listed CommSoft share for every 4.25 Strathmore ordinary shares they sell. Shareholders on the Strathmore register on August 18 will be eligible to participate in the buy back.
CommSoft Directors, cornerstone shareholders including Cullen Investments and Advantage Group, and institutional investor New Zealand Funds Management have agreed to accept the buyback.
To ensure that listed shares in CommSoft are transferred, the offer to buy back shares is conditional on the completion of the CommSoft IPO on or before November 30.
Strathmore shareholders will receive the formal buy back offer no later than 21 August and have until September 1 to accept the offer. Shareholders may also participate on a pro-rata basis with other shareholders in selling further shares as will be required to ensure that 15% of the Company’s capital is acquired by Strathmore. The Company will acquire no more than 15% of its capital. Strathmore Directors and cornerstone shareholders have committed to sell more shares if required for this purpose.
CommSoft share selldown
Noting that the CommSoft listing was to proceed, Strathmore said it would be selling down $A2million of its investment into the IPO.
"Strathmore Directors and the founding shareholders of CommSoft decided that it was in the best interests of the CommSoft listing to sell a portion of their holdings in the IPO. These sales will assist the IPO by making more shares available in the market to meet demand," Mr Norman said.
Strathmore holds a 38% interest in CommSoft which will be reduced to 14% after the IPO, sell down and buy back.
Strathmore options (NZSE: SMROA) holders wishing to participate in the buy back and the preferential entitlement in the CommSoft prospectus for Strathmore shareholders will need to exercise their options prior to the earlier entitlement date, 11 August.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ19 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group Limited
Tel +64 21 667 210, E-mail:
Michael Bartrom, Botica Conroy & Associates
Tel , E-mail: 021 403 503
Wednesday, 2 August 2000
Strathmore Announces Further Buyback Details
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced further details of its share buyback programme.
Close off date for shareholders to be on the Strathmore resister has been extended from August 4 to September 11. Executive Director Phil Norman said the move would give the company the opportunity to provide shareholders with more detailed information on the buyback.
Shareholders will receive the formal offer form and buy back information memorandum and will have 10 days in which to take up the offer.
Strathmore also announced that option holders would not be eligible to participate in the buyback. There are 5.5 million 20 cent Strathmore options (NZSE: SMROA) on issue. Options must first be converted to ordinary shares in order to qualify for the scheme. Option holders seeking to convert should advise the Company’s registry, Computershare, of their identity and provide written notification to the company enclosing their cheque for the required amount and their holder number.
On July 24, Strathmore issued a ‘don’t sell’ notice and announced plans to restructure its balance sheet by buying back 15% of its share capital. The buy back is to be funded by the provision of shares in Strathmore investee company CommSoft Group Limited.
Strathmore directors and cornerstone shareholders Advantage Group, Cullen Investments and New Zealand Funds Management indicated at the time of the buy back announcement that they intended to take part in the scheme. The relative stakes of all shareholders will remain the same after the buy back should remaining shareholders accept the offer.
Mr Norman said shareholders would receive comprehensive information on which they could make decisions about their shareholding. Strathmore will announce further details about the offer commencing next week as the final documentation process is completed regarding the offer itself and associated statutory compliance issues.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ19 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group Limited
Tel +64 21 667 210, E-mail:
Michael Bartrom, Botica Conroy & Associates
Tel , E-mail:
Monday, 24 July 2000
Strathmore Announces 15% Buy Back Of Capital With CommSoft Shares As Consideration
Directors recommend shareholders not sell pending finalisation of terms and structure of offer
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced a pro rata offer to buy back 15% of the company’s capital. The offer will be made to all shareholders recorded on the register as at 4 August 2000 and will be funded by the provision of shares in Strathmore investee company CommSoft Group Limited. Strathmore shareholders will receive the formal offer form and buy back information memorandum containing the share ratio details in August and will have ten days in which to take up the offer. The directors of Strathmore have indicated their intention to accept the buy back.
Strathmore’s Executive Chairman, Phil Norman, said that both Strathmore board members and cornerstone investors supported reshaping the balance sheet through a return of capital to shareholders. In addition the cornerstone and institutional investors in Strathmore, which include Advantage Group, Cullen Investments and New Zealand Funds Management, have indicated their intention to accept. These companies, together with the directors, hold a combined shareholding in Strathmore of approximately 38%. The relative stakes of all shareholders will remain the same after the buy back should remaining shareholders accept the offer.
An international leader in the development of niche software products for the telecommunications industry, CommSoft’s success has been driven by strong market share and sales channels in New Zealand, Australia, the United Kingdom and South Africa. "Its international presence, strong management team and established CMS and CRM software have made it an attractive prospect for investors looking to invest in a growth company in a growth industry," says Norman.
Strathmore will announce further details about the offer over the next few weeks as the final documentation process is completed regarding the offer itself and associated statutory compliance issues.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group Limited
Tel +64 21 667 210, E-mail:
Allan Botica, Director, Botica Conroy & Associates
Tel , E-mail:
Wednesday, 31 May 2000
Strathmore Investee Company Inspar Secures Major
Licensing Agreement With Leading US Cable Television Network
MediaPoster deal with ZDTV worth NZ$400,000
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced that its US based investee company Inspar has secured a major licensing deal with the North American cable television network ZDTV, owned by Microsoft co-founder Paul Allen. The deal, valued at NZ$400,000, involves the licensing of Inspar’s core product MediaPoster, a world leading web enabling software application that allows users to share video and audio clips via the Internet. Strathmore acquired 30% of Inspar in February this year.
"MediaPoster allows our customers to enrich e-mail by video or ‘v-mail’ with the use of multimedia web tools that capture, edit, compress and upload video clips," said Inspar’s Co-Founder and CEO, Andrew Matlock. "Through our association with Strathmore and their global network partners, Double Impact Inc., we were able to secure this major licensing agreement with ZDTV. The deal will give us invaluable marketing exposure across North America."
Strathmore’s Chairman, Phil Norman, says that the growth in bandwidth capacity in the United States means that the demand for MediaPoster will accelerate very rapidly, enabling Internet users to enrich their email communications with video images and voice. "By supporting the delivery of standards-based video and audio, Inspar has homed in on one of the fastest growing areas of Internet usage. The licensing deal with ZDTV is a key milestone in this growth and a substantial endorsement from a target industry. In addition, discussions are already well advanced with a number of large portal and other distribution partners in the US, all of whom have endorsed the technology."
"Inspar’s success with ZDTV is a great example of Strathmore’s strategy of investing in Australasian technology with the potential for rapid expansion in the US with financial and practical assistance from both Strathmore and our Silicon Valley partners, Double Impact Inc."
About Inspar Limited
Inspar provides multimedia enabling technologies to Internet community sites. Inspar’s major product offering, MediaPoster, is designed for use by Web companies such as portals, online auction sites, dating services, online greeting card companies and their customers. MediaPoster makes it simple for users to post video and audio to a Web site. Users can quickly and easily record, compress and upload multimedia messages onto a host site where they stream directly using industry-standard formats such as RealNetworks’ RealSystem G2, or Microsoft’s Windows Media Format. Inspar has offices in San Francisco and Melbourne.
About ZDTV Limited
ZDTV is the largest cable television network in North America dedicated to technology with 20 million subscribers. The 24-hour cable television network and integrated website focuses on computing, information technology, and the Internet. The shows help viewers improve their computer knowledge and participate more fully in the Digital Age. Via television, new users are introduced to the ways that computers can help them at work and at home.
The website, ZDTV.com, expands on the television content taking the issues and interests of the TV shows, adding information and resources. If interest is sparked by something on television, viewers are encouraged to satisfy that curiosity on the website. The Interact section is used for chats, contests, message boards, and other community-based projects in which viewers share their interests in computers and the Internet.
ZDTV is owned by Vulcan Ventures, Inc., the Bellevue, Washington-based investment organisation of Microsoft co-founder Paul G. Allen. Vulcan Ventures purchased ZDTV from its founder, Ziff Davis, in a transaction completed on January 21, 2000. Through Vulcan, Paul Allen invests in companies that offer products, services, or technologies that fit his "wired world" strategy and can contribute to or benefit from the technology and strategy of other companies within the group's extensive investment portfolio. For more information on ZDTV or Vulcan, visit www.zdtv.com and www.paulallen.com respectively.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group Limited
Tel +64 21 667 210, E-mail:
Andrew Matlock, Co-founder & CEO, Inspar Limited
Tel +1 4, E-mail:
Nicholas O’Flaherty, Account Director, Botica Conroy & Associates
Tel , E-mail:
Thursday, 27 April 2000
Strathmore Takes Stake In Giant Australasian Merger
CreditNet Technology To Play Key Role in RMG
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced it had reached agreement to sell its stake in CreditNet International Limited along with other shareholders in CreditNet. The ownership of CreditNet will transfer to a new entity, RMG Limited, which intends to list on the Australian Stock Exchange.
RMG Limited will not only become Australasia’s largest receivables management company, it will be the first in the region to offer an integrated range of receivables, debt management and credit reporting services under a single umbrella.
Clients who have traditionally dealt with several agencies will now be able to obtain a full range of services from the one company. These will include traditional debt recovery and receivables management, credit information services together with database management, debt purchasing, factoring, ledger management as well as complete outsourcing of a company’s receivables function.
"The RMG initiative will significantly change the receivables management business in Australasia. The decision to become part of this transaction fast tracked Strathmore’s original plans with CreditNet," explains Strathmore’s Executive Chairman Phil Norman.
"CreditNet was experiencing significant growth primarily from its core technologies which were well suited to the emerging on-line environment. RMG intends to continue this approach leveraging CreditNet’s state-of-the-art technology," continues Norman.
Strathmore will receive script in RMG in return for its shareholding in CreditNet, which stands at 36.3%. "This is a good deal for Strathmore," says Norman. "The merged organisation will be in a stronger and more competitive position. Our investment will benefit from the partnerships with other companies that RMG enters into to secure and maintain a dominant position in our Asia Pacific region."
CreditNet is a credit business with offices in Auckland, Wellington, Christchurch, Dunedin as well as a number of regional centres. It provides services to clients in the utility, insurance, automotive and retail sectors through its trading units, which include the well-known Creditmens brand.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Phil Norman, Executive Chairman, Strathmore Group Limited
Phone +64 21 667 210, Email
Nicholas O’Flaherty, Senior Account Manager, Botica Conroy & Associates
Phone , Email
Friday, 14 April 2000
Strathmore’s $1.4 Million Half Year Profit In Line With Expectations
Shareholders’ Funds Now Stand at $19 Million
Strathmore Group Ltd (NZSE: SMR) has announced a consolidated profit of $1.4 million on a gross turnover of $1.9 million for the half year ended 31 January 2000. The result represents earnings of 2.3 cents per share compared with a loss of 6.9 cents per share in the previous corresponding half year.
According to Strathmore’s Executive Chairman Phil Norman, the result contains no real surprises. "While reporting a profit turnaround is satisfying, the important decisions for future value creation have largely been made since the end of the period. As a result we have now almost doubled our shareholders’ funds to $19 million and made four significant investments. The greater significance for shareholder value lies in understanding the dynamic transformation in the company’s business arising from these new investments rather than the half year report," says Norman.
"Accounting conventions require the reporting of the one-off profit realised from the sale of our investment in Wellington Drive Technologies Limited, as well as the consolidated results from CommSoft Communications Limited which are presented as a 100 percent owned subsidiary," continues Norman.
"Conversely, the substantial increase in shareholders’ funds reflects tremendous market confidence in the quality of both Strathmore’s investments and focussed management. The value in these investments grows through our ability to assist management to focus on growth enablers and to leverage our international networks in order for them to achieve accelerated growth in global markets. Identification of high growth and EBIT businesses, quality management, innovative technology and global prospects are the keys to our success; however they will not unlock any doors to profitability without operating excellence. We must continue to leverage Strathmore’s existing investment and management capabilities to grow sustainable capital appreciation from our investee companies for all our shareholders."
Other details announced in the Strathmore result included total assets with a book value of $17.7 million while liabilities were $7.2 million. The capital raising of just under $8 million in early March was reported, but not booked in the results.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 19 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Monday, 10 April 2000
Strathmore Strengthens Business-to-Business e-Commerce Portfolio with $NZ 2.0 Million Investment in Soft Tech
Global Software Player Targets $US 3.2 Trillion North American Construction Industry
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced it will acquire a 16.67% interest in Soft Tech America, Inc, a rapidly growing business-to-business e-Commerce software company operating in the construction industry. Strathmore will invest $NZ 2.0 million to acquire its 16.67% interest through the issue of new shares in Soft Tech. It also has an Option, exercisable on or before 31 July 2000, to acquire a further 16.66% of Soft Tech for $NZ 3.0 million.
Originally founded in New Zealand in 1987, Soft Tech has offices in North America, Europe, Australia and New Zealand. The company provides costing and estimation modelling software for manufacturers and distributors of commercial aluminium, timber and plastic joinery products throughout the world. Soft Tech’s state of the art V6 software incorporates a fully functional e-Commerce capability that allows orders for both finished products and raw materials to be sent to suppliers via a business-to-business trade Web site. The company employs seventy staff worldwide and retains all software development activities in New Zealand.
"Soft Tech’s software has been rapidly accepted by a large number of manufacturers and distributors throughout the United States, Europe, and Australasia who are using technology to improve productivity and profitability on complex construction projects," explains Strathmore’s Executive Chairman Phil Norman.
According to Norman, the trend for more and more construction companies to buy and sell materials online makes Soft Tech an attractive investment. "The company is already the leading supplier of software to the aluminium joinery manufacturing industry worldwide. It is particularly well positioned to capture business from existing and new customers as Soft Tech exploits the e-Commerce capabilities now included in its offerings. Online procurement is growing rapidly in the huge $US 3.2 trillion North American construction industry and Soft Tech is already well known as the best of breed supplier in its sector," says Norman.
The company has had an office in the United States for several years and is generating profitable revenues from this market as well as those other markets in which it operates. "This is important as it provides a strong foundation for Soft Tech’s future growth and adds another profitable investment to Strathmore’s portfolio of investee companies," says Norman.
John Ball, Founding Director of Soft Tech, says there are an increasing number of manufacturers as well as distributors wanting to order materials directly from suppliers using online procurement systems and the company’s V6 software will be a key enabler in making this happen. "V6 with its intelligent object technology has the potential to be a major force in the virtual supply chain within the construction industry," says Ball. "The association with Strathmore, and in particular access to their international contact network, will accelerate our growth. We are looking forward to maximising the opportunities in our existing markets and with Strathmore’s help, entering new, related markets."
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately $NZ 18 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internally.
For further information, please call:
Monday, 3 April 2000
Strathmore’s Global Network Extends Further With Strategic Stakeholding In Leading US Venture Catalyst
US$1 Million Deal Clinches 10% Shareholding In Double Impact Inc Placing Strathmore At The Centre Of North American Venture and Investor Services Activity
Strathmore Group Limited (NZSE: SMR) has further extended its global network by taking a 10% stakeholding in Silicon Valley’s Double Impact Inc, one of the most sophisticated technology "Venture Catalysts" in the world. In a deal worth US$1 million, Strathmore will pay US$500,000 cash upon full execution of the Share Subscription Agreement, and US$500,000 in Strathmore shares to acquire a 10% interest in Double Impact. The Strathmore shares will be issued at 45 cents (NZD).
Established in 1996, Double Impact has offices in North America, Europe, Asia and Australasia servicing an extensive international client portfolio from these locations. "As the surge of cross-border Internet venture activities continues and regional markets around the world come of age, there is a growing need for a mechanism to effectively unlock and increase the value of these nascent ventures," explains Michael J. Gale, CEO of Double Impact. "Strathmore, like Double Impact, aims to do just that for its investees and this investment will strengthen the commercial relationship that has existed between our firms for some time".
"Strathmore is one of the most successful funders of ‘born global’ companies that I have seen", continues Gale. "Forming this highly strategic relationship greatly assists us in taking advantage of the many market opportunities originating from Australasia. Strathmore further strengthens our international deal flow capability and we welcome them to our global network."
The strategic investment in Double Impact is a significant step for Strathmore according to Strathmore Chairman, Phil Norman. "This investment places our company right at the heart of the North American venture services market. The investment in Double Impact will greatly increase our ability to leverage an international resource base, further assisting our investee companies to grow the global potential of their products," says Norman.
Double Impact has a team of 30 professionals, all of whom have a wealth of experience in the ‘Internet economy’. "We have previously worked with Double Impact and used them in a variety of roles for our investee companies including, strategic partner identification, market analysis and business development services, technology licensing and deal negotiations," says Norman. "We have always been impressed with Double Impact’s ability to accelerate the development of their clients’ businesses and have found that access to their extensive global network of industry contacts is enormously beneficial to the Australasian companies we work with."
The transaction which is part of a US$2 million funding round will also see Norman take a position on the board of Double Impact Inc. Norman says this will allow Strathmore to directly pursue business opportunities in the US technology space creating additional shareholder value in the company.
"Bringing Double Impact onto our share register will also enhance our ability to generate deal flow from companies in the United States and Europe that are seeking an Asia Pacific presence. This latest transaction creates another growth opportunity in the technology investment area which is a core focus for Strathmore," says Norman.
About Double Impact Inc
Double Impact Inc is a global venture catalyst focused on building upside for high growth Internet, IT, new media start-ups and established companies. Since 1996, the company has been accelerating the growth and success of clients around the world with its international network of offices. Entrepreneurs, investors, corporations and governmental agencies hire the Double Impact team to help their ventures gain value faster. Double Impact offers venture and investor services to clients anywhere in the world. As The Silicon Valley Lighthouse™, Double Impact can tap into the Valley's deep pool of entrepreneurial resources and as The Global Venture Catalyst™, it can accelerate growth in any geography. More information on Double Impact is available on the web at www.doubleimpact.com
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company with approximately NZ$18 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 strategic advice, capital support, operational assistance, industry expertise and a network of relationships to assist technology companies to migrate internationally.
For further information, please call:
Thursday, 24 February 2000
Strathmore Raises $6 Million from NZ Funds
Technology investment company, Strathmore Group Limited (NZSE: SMR), today announced that it has agreed to place 13.3 million shares at 45¢ per share with NZ Funds. With this investment, Strathmore introduces a substantial institutional investor holding with well in excess of 5% of the total shares on issue.
NZ Funds is one of the region’s leading investment managers, managing in excess of NZ$1 billion in New Zealand on behalf of clients.
"On the strength of Strathmore’s performance to date, its investment model and deal flow, NZ Funds has elected to take a long-term position in the stock," says NZ Funds Michael Lang. "As a result of Strathmore’s first round of investments, we are confident of the company’s long-term growth prospects. Our view is that the stock has matured to a point where it now has a place in institutional portfolios."
Coupled with this placement, Strathmore has introduced two Australian institutions have also taken positions and further New Zealand retail support from professional investors raising an additional $1.8m, representing approximately 4.1million shares. The placement was organised by, JB Were and Co.
With this capital raising, Strathmore’s funds available for investment are currently approximately $11 million.
"This placement will enable Strathmore to continue its accelerated investment programme, evaluating and meeting the funding requirements of the significant flow of quality deals presented to us," says Chairman Phil Norman. "We welcome growing NZ Funds’ substantial interest in Strathmore: it constitutes the institutional investors’ acceptance of our business model and ability to deliver substantial shareholder value."
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company. 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.
Tuesday, 22 February 2000
Strathmore Takes 30% Stake in Inspar
Invests NZ$1.2 Million in Web Multimedia Software
Internet and technology investment company, Strathmore Group Limited (NZSE:SMR) today announced that it has acquired a 30% interest in San Francisco-based Web software developer, Inspar, Inc. for a consideration of $US 630,000. ($NZ 1.286 million).
Inspar’s major product offering, MediaPoster, is designed for use by Web companies such as portals, online auction sites, dating services, online greeting card companies - and their customers. MediaPoster makes it simple for users to post video and audio to a Web site. They can quickly and easily record, compress and upload multimedia messages onto a host site where they stream directly using industry-standard formats such as RealNetworks’ RealSystem G2, or Microsoft’s Windows Media Format.
Strathmore’s Chairman, Phil Norman, says that the growth in bandwidth capacity in the United States means that the demand for MediaPoster will accelerate very rapidly, enabling Internet users to enrich their email communications with video images and voice. "By supporting the delivery of standards-based video and audio, Inspar has homed in on one of the fastest growing areas of Internet usage. Discussions are already well advanced with a number of large portal and other distribution partners in the US, all of whom have endorsed the technology. This makes the Company a compelling investment proposition."
"The software was originally developed in Australia and is a good example of Strathmore’s strategy of investing in Australasian technology with the potential for rapid expansion in the US with financial and practical assistance from Strathmore. Inspar fits our criteria extremely well: the software is fully developed; the niche is a rapidly growing one; the competition is limited; the management team is strong and market interest is already high. Our role is to help Inspar capitalise on the great work done so far."
Andrew Matlock, Co-founder and CEO of Inspar, Inc, says that the Company’s development and management team has a proven record in creating critically and commercially successful multimedia software and that MediaPoster will further strengthen this position. "MediaPoster is a robust and sophisticated product. It makes the otherwise complex task of recording, editing, compressing and uploading multimedia files as easy as the clicking Record, Stop and Send buttons."
Inspar, Inc. is projecting revenues in its first year of operations of $NZ 4.0 million. The projection for year two is $NZ 8.2 million.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company. 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.
Friday, 11 February 2000
Strathmore Takes US$1 Million Stake in Genie Systems
Turn-key Solution For Business-To-Business E-Commerce Markets
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced it has acquired a 10.0% interest in businesses-to-business e-commerce software company, Genie Systems, for consideration of $US1.0 million.
US$500,000 will be paid on settlement and US$500,000 on 31 March 2000. Each payment will be accompanied by a pro-rata issuance of shares. Strathmore has an option to subscribe to an additional 6.0% of equity in consideration of a further US$600,000 on 30 June 2000.
Genie provides a turn-key solution that enables the creation of businesses-to-business e-commerce markets. Called Orderware, it is an ASP-ready application, written in Java and Delphi for Windows NT and SQL Server 7.0. It handles multi-vendor catalogues, supply chain management and procurement. The revenue model shows streams from transaction processing, application hosting, software licensing, embedded software licensing and ongoing maintenance.
Orderware has already enabled three Internet marketplaces in New Zealand - medical supplies, building supplies and corporate computers and peripherals - and is in the process of enabling another four - office consumables, wholesale food, leisure travel and home entertainment.
"Genie Systems has, at entry, clear category leadership potential in a rapidly growing business-to-business segment," says Strathmore Chairman, Phil Norman. "Its ready acceptance in New Zealand and early-entry results in the US market, where companies are racing to develop metamediaries, make it a compelling investment proposition.
"Genie already has customers in the US and will use the funding provided by Strathmore to grow rapidly in this market. The company expects to record positive cashflows by the end of 2001."
About Metamediaries
A growing number of e-commerce initiatives bring businesses-to-business buyers and sellers together in central Internet-based marketplaces where they can communicate, exchange ideas, advertise, bid in auctions, conduct transactions and co-ordinate inventory. Over 200 of these already exist - including CommerceOne, Ariba, PurchasePro and VerticalNet - in 150 industry segments from aeroplane parts to transport and logistics.
The companies that create these marketplaces are called metamediaries. As well as creating business-to-business e-commerce marketplaces, they automate transactions, aggregate information, improve market reach, helping reduce both product and process costs. In addition they provide services such as procurement management, financial settlements and quality assurance. According to US analysts Bear Stearns and Goldman Sachs metamediaries will be responsible for the sale of US$438 billion in 2003.
Key Genie Systems Executives
Chief Executive Officer, Mike Hendry, has held international sales, marketing, and product management positions for IBM including that of Global Marketing Manager for IBM’s telecommunications customer care and billing unit. Prior to joining IBM he worked for Telecom New Zealand. Mr Hendry holds an MBA from Otago University.
Chief Technical Officer and Genie Architect, Peter Garden, developed a multi-user small business accounting software package, Cashlink, founding Cashlink Software (UK) Ltd, (3000 sites) and CashLink New Zealand (2500 sites). Mr Garden holds a BSc (Hons) from Victoria University of Wellington and has undertaken postgraduate work on genomics and automated gene sequencing.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company. 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.
Wednesday, 2 February 2000
Strathmore Accelerates CommSoft Payment
Acquires Additional 5% Option
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.
Tuesday, 1 February 2000
Strathmore Invests in Global Online Promotions
Strathmore Group Limited (NZSE: SMR) today announced that it has agreed to invest $550,000 in Global Online Promotions (GOLP), with an option to increase this to $2 million to acquire a stake of up to 33.3 percent. Other shareholders of GOLP are private investors including Cullen Investments, senior management and a privately owned Melbourne-based technology company.
GOLP is an Internet e-commerce initiative that provides online solutions to the retail sector. The product, currently under development in New Zealand and expected to be ready to market in three months, has considerable potential to expand in international markets.
GOLP’s founders and management team include Chairman, Chris Aiken, one of the original founders of ComputerLand and a director of several technology and retail companies, and Director, Marketing and Strategy, Chris Berryman, who has considerable international experience in the e-commerce sector.
"In order to protect a first-to-market advantage we will not provide further details about Global Online Promotions until product development is completed and partnership agreements have been finalised," says Phil Norman, Chairman of Strathmore Group. "We expect to be able to do this early in the second quarter."
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.
Wednesday, 26 January 2000
Strathmore Takes US$1,000,000 Stake in Haht’s Global E-Commerce Play
Secures 10% of Haht Asia to Expand Sales and Support Activities
Internet and technology investment company, Strathmore Group Limited (NZSE:SMR) today announced that it has invested US$1 million to secure stakes in Haht Software Inc and Haht Asia Inc, developers and regional distributors of leading business-to-business e-commerce Web applications.
North Carolina-based Haht Software is a leading provider of a new category of Internet software applications that enable companies to simplify and distribute information stored in enterprise systems to employees, customers and suppliers. Haht Asia, which has offices in Sydney and Tokyo, has agreements, the majority exclusive, to sell and service Haht applications in countries in East and South Asia, the Pacific and South Africa.
Strathmore will invest US$500,000 as part of a US$1.5 million funding round to expand the sales and support activities of Haht Asia. The investment will represent 9.11% of the company’s issued share capital when the finance round has been completed.
"We will take a position on the board of Haht Asia to directly assist further business penetration in the region," says Strathmore Chairman, Phil Norman. "This will enable us to create additional shareholder value for Strathmore."
As part of this investment Strathmore has also secured the opportunity to participate in the pre-IPO funding round for Haht Software Inc., led by San Francisco-based investment bank Chase, Hambrecht and Quist. Strathmore has invested US$500,000 out of a total funding round of US$15 million. Further information about Haht Inc is available on www.haht.com
"As a result, this is a strong mirrored investment into a regional opportunity leveraging off a US pre IPO investment," says Norman. "It meets the criteria we outlined in the investment strategy presented at last month’s AGM. We have taken a strategic stake in a fast-growing business in Australia/Asia and are also participating in an attractive US B2B e-commerce company pre-IPO. It also provides Strathmore with an opportunity to co-invest with leading US venture capital funds and investment banks.
"Haht’s products are already in global use," says Norman. "With established partnerships with major international vendors, good management and proven business models, Haht is well-positioned in the high growth enterprise systems market. The placement addresses an opportunity in both e-commerce and information technology investment, two core focus areas for Strathmore."
Haht Products and Customers
Haht’s e-Scenario software applications impact key relationships and transactions throughout the e-commerce life cycle. They integrate with existing IT infrastructure in real-time, providing a solid architectural foundation and an open framework for integrating best-of-breed components. They can be rapidly and cost-effectively deployed to Web-enable existing enterprise systems. Customers gain rapid e-business benefits and improved ROI.
The e-Scenario software solution set comprises the HahtSite application server platform, a high-end architecture, a rapid development environment and a full life cycle management tool for e-business that facilitates real-time integration between e-commerce sites and back-end enterprise systems.
Applications combine transaction capabilities with one-to-one content and can support personalised text, graphics and database content. They can be integrated "out of the box" with existing enterprise systems, including SAP R/3, and run on the HahtSite server to provide a strong platform for e-business expansion. Their flexibility and open-architecture preserves company investments in putting information on-line.
Haht has a base of over 500 HahtSite and e-Scenario customers spanning multiple industry segments including financial services, government, manufacturing, technology and telecommunications. Customers include AT&T, Deloitte and Touche, EDS, J.P. Morgan, Kimberley-Clark, Kohler, Lockheed Martin, Nortel Networks, Prudential, SAP, SABRE, Southwestern Bell, Starbucks and United Technologies.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company. 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.
Monday, 13 December 1999
Strathmore Investee CommSoft Wins In Europe With Panasonic
Targets Number One Position In UK Communications Management Market By July 2000
Strathmore Group Limited (NZSE:SMR) investee company CommSoft Group today announced it has secured an agreement with Panasonic to license its Internet enabled software for PABX systems throughout the UK and Europe.
CommSoft Group General Manager, Rodney Martin, says the deal, worth approximately $1.5 million per annum in the UK market alone, will enable the company to secure greater market penetration for its communications management products.
Martin says, "Panasonic has a twenty eight percent market share amongst key phone sales in the UK, the second after British Telecom, another CommSoft licensee. Our existing agreement with British Telecom already places us at number two in the communications management product market. This new deal will be fundamental in our efforts to become number one in the UK by July 2000."
Central to the agreement has been CommSoft’s development of a customised product called PanaStat (Panasonic Statistics). Martin says PanaStat has been specifically designed as a cost-effective call centre solution for small to medium size enterprises.
"Many businesses are using call centres to drive simplicity and flexibility throughout the supply chain and strengthen customer alliances. PanaStat assists this process by reducing the number of technologies used in the call centre environment through the provision of a range of sophisticated management and reporting tools."
Going forward CommSoft plans to leverage its regional position with Panasonic by shipping PanaStat to key markets in Europe. "The agreement with Panasonic has boosted our capabilities and given us greater access to European markets at significantly lower costs. In doing so it has brought further opportunities to broaden our product offering to a wider customer base," says Martin.
CommSoft currently employs 15 sales and support staff in the UK. Martin says he expects this number to increase to 50 by March 2000 to support the company’s market expansion activities.
Strathmore Group General Manager, Investments, Ken Davis says, "CommSoft’s success in rapidly gaining share in the UK is fully in line with Strathmore Groups strategy of migrating New Zealand-based technology companies to international markets with potential to deliver accelerated growth and returns to shareholders."
About CommSoft Group Limited
CommSoft Group Limited is a telecommunications and Internet software company operating in New Zealand, Australia, Singapore and the United Kingdom. Since 1997 the company has developed a range of business telephony solutions, including web browser-based applications that provide a range of inexpensive telephony management, cost allocation and tarrifing solutions designed for small to medium enterprises.
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company. 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 which enables smaller companies to grow to the point where they are ready for such a migration.
Monday, 13 December 1999
Strathmore Takes CreditNet
Internet and technology investment company, Strathmore Group Limited (NZSE: SMR) today announced that it has reached an agreement to purchase a stake in CreditNet International Ltd.
The agreement provides for Strathmore to pay a total of $1.15 million, over a fifteen month period, in return for a 50% shareholding in CreditNet International.
CreditNet is a credit business with offices in Auckland, Wellington, Christchurch, Dunedin and a number of regional centres. It supports a number of national accounts in the utility, insurance, automotive and retail finance sectors through its trading units, which include well-known Creditmens brand.
CreditNet International has invested in Internet based computer systems which provide clients with easy and low cost Internet access to its credit services. Internet enablement is allowing rapid growth and simplifying the provision of credit services.
"Because CreditNet’s core technology is not based on cumbersome legacy systems, it is well suited to the emerging on-line environment," says Strathmore Group Chairman, Phil Norman. "It is already a world class application which, with the addition of e-commerce, email and autodial functionality, is well suited to scale for deployment in international markets.
"CreditNet’s investment in Internet-based systems mean that it is poised to capitalise on the revolution in e-commerce both in New Zealand and Internationally. This includes providing businesses with enhanced knowledge and understanding of the credit quality, payment status and collection performance of their outstanding debtors."
About Strathmore Group Limited
Strathmore Group Limited is a technology investment company. 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 which enables smaller companies to grow to the point where they are ready for such a migration.
Friday, 3 September 1999
Strathmore Makes Technology Investment Move
$8 Million Cash Issue to Follow
Following a change in shareholding, Strathmore Group Limited (NZSE: SMR) today appointed a new board, who announced that the company would seek to raise $8 million via a cash issue to invest in high growth technology businesses.
Advantage Group (NZSE: ADV) has become a cornerstone shareholder, holding around 20% of Strathmore. Other shareholders include Cullen Investments, at 10%, with the balance held by Saree Holdings and other investors. Earlier today Saree purchased the Thompson family shareholding in Strathmore at $0.18 per share.
Strathmore also acquired the investment arm of technology advisory firm, Foresight Partners, including its interest in telecommunications and Internet software company, CommSoft, in return for 955,882 Strathmore shares issued at $0.18, a slight premium above asset backing. This represents 5.7% of shares on issue.
On completion of all transactions the majority shareholders appointed Foresight Partners' founder, Phil Norman, Peter Wright and Don Cowie to the board of Strathmore, with Mr Norman becoming Chairman. The new directors announced plans to focus on technology investments, targeting Internet, e-commerce and information technology companies with potential to deliver accelerated growth in shareholder value by competing in global markets.
The new board, whose members have previously worked together on a number of projects, combines technology appraisal, technology management, international banking, investment banking and capital market expertise. The directors will work actively with investee companies, leveraging their operational and international experience to provide strategic counsel and assistance with international marketing as well as expansion funding.
"Strathmore will act as a knowledge bank to investee companies in the Internet, e-commerce and related sectors, assisting them to compete internationally. The board is a seasoned team with an excellent international network of financial, commercial and marketing relationships, a track record in taking NZ companies offshore and an understanding of US capital markets," said Mr Norman. "We will work with senior management in investee companies to develop optimal strategies for entry and growth in US and European markets.
"Strathmore will take strategic positions in businesses that have products with the potential to succeed internationally, quality management and the ability to become market leaders in their category. We will provide them with expansion finance, strategic counsel, market entry guidance and advice on capital structure and governance."
Cash Issue
The board also announced that, to fund its investments, the company would seek to raise $8 million via a 10 for 1 cash issue at $0.05 per share, at a time dependant on presentation and approval of a prospectus. Post the cash issue, ordinary shareholders will also participate in a 1 for 3 issue of options at an exercise price of $0.20.
This will leave Strathmore with an initial technology investment fund of over $10 million, after taking into account the proceeds of the issue and current cash on hand. Subject to capital allocation guidelines, cash raised will be used to take strategic positions in qualifying technology companies and assist them to deliver accelerated appreciation in shareholder value.
Initial Investment
Strathmore also today announced its first investment, an agreement to acquire a stake of up to 31% in CommSoft, a telecommunications and Internet software company that has developed a web browser-based business application for telephony management, cost allocation and tarrifing. The business currently operates in New Zealand, Australia and the UK.
Company Background
Strathmore Group Limited is a technology investment company. 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 which enables smaller companies to grow to the point where they are ready for such a migration.
Dr R J Thomson
Chairman of Directors
Strathmore Group advised that it has acquired 25.249m ordinary shares at 35c each pursuant to the buyback offer. Total number of securities after the issue is 23,719,084.
Strathmore Group advised that on 25/03/98 they acquired 62,400 ordinary shares at 35cps pursuant to the special resolution passed by shareholders on 13/01/98, at prices below the net asset value of the company.
Strathmore Group advised that on 24/03/98 they acquired 109,400 ordinary shares at 35cps pursuant to the special resolution passed by shareholders on 13/01/98, at prices below the net asset value of the company.
Strathmore Group advised that they have acquired 134,000 ordinary shares at 35cps pursuant to the special resolution passed by shareholders on 13/01/98, at prices below the net asset value of the company.
Strathmore Group advised that they have acquired 22,000 ordinary shares at 35cps pursuant to the special resolution passed by shareholders on 13/01/98, at prices below the net asset value of the company.
Interim Report posted to website at
https://globalregister.co.nz/strathm/sg98-ir.htm
Chairman's Address to AGM: The strategy of the directors at the moment is:
1. To offer to distribute via on-market repurchases up to $10m to shareholders. This will reduce the asset base to about $2.8 plus the 30% holding in Wellington Drive and 43% holding in CES;
2. It is unlikely that Strathmore will invest in any other longer term investments in the short term. The total focus is on maximizing our returns from our investments in Wellington Drive and CES. The Exchange has also received the briefing on developments for Wellington Drive and CES.
STRATHMORE TO DISTRIBUTE MOST OF IT'S ASSETS TO IT'S SHAREHOLDERS
Strathmore intends via a prorata share buyback offer for up to 38 million shares, to distribute to it's shareholders some $10m in cash and all of it's shares in Wellington Drive Technologies Ltd and all of it's shares in CES Communications Ltd. Valuing the Wellington Drive shareholding at current market value on Sharemart (36cps) and valuing CES at the value of the recent placement of new shares to Strathmore places a value on the buyback offer of $17m or about 45cps. If approved and the offer accepted by all shareholders about 85% of Strathmore's assets will be distributed to it's shareholders and about 75% of Strathmores outstanding shares will be cancelled.
Strathmore shareholders accepting the offer will end up with their proportion of the cash distributed ( value per cancelled share = 26.3c ), their prorata proportion of Wellington Drive ( value per cancelled share = 13c ), and their prorata proportion of CES ( value per cancelled share = 5.5c ), and as wellthey will still retain about a quarter of their current holding in Strathmore. Strathmore will remain as an investment company (with a cash asset backing of about 25cps). However it's reduced size will be more appropriate to merge with some existing operating entity and accordingly a wider range of oppertunities are likely to present themselves. It will retain about $3.5m of tax losses.
The directors of Strathmore believe that their two new technology investments, Wellington Drive and CES, are well placed for the future and that these shareholdings no longer serve any benefit being owned by Strathmore as opposed to being owned directly by the Strathmore shareholders. Both companies own patented technology, both have gone through long development phases, both have recently started licensing international operators as well as starting to produce and market products directly themselves.
A special resolution that the directors of Strathmore will be putting to shareholders at a special meeting is set down for 31st of July 1997. If approved a buyback offer document will probably be sent out with the Strathmore annual report around the beginning of October. The distribution of cash and shares is likely to occur in December.
The Directors of Strathmore advise as follows:
On 27th February 1997, Strathmore advised the Exchange and its small shareholders that it would sell the shares of all those shareholders holding less than a minimum holding (being 1,000 shares) pursuant to the fourth schedule of the Strathmore constitution. Three months notice has been given and a number of shareholders have adjusted their position accordingly. The share registry has been instructed to amalgamate all the remaining minimum holdings on 27th May 1997 with a view to selling these shares on the market next week. There are about 84 shareholders involved holding about 45,000 shares. Any shareholder concerned about their position should contact the company immediately.
Strathmore Group acquired 151,000 ordinary shares at 36cps pursuant to the on-market share buyback. The total number of shares of this class on issue after this acquisition is 50,652,684.
Strathmore Group acquired 59,600 ordinary shares at 35cps pursuant to the company's buyback scheme. The total number of shares on issue after this buyback is 50,803,684.
Strathmore Group advised it has acquired 139,100 ordinary shares at 35cps. The total number of shares of this class on issue after this buyback acquisition is 50,863,284.
Strathmore Group advises it has acquired 100,000 ordinary shares at 71cps. The total number of shares of this class on issue after this buyback acquisition is 85,010,000.
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