By FIONA ROTHERHAM
Strathmore Group has accelerated payment of its $1 million convertible note to CommSoft Group to assist the Auckland-based telephony software company to list on the Australian Stock Exchange within six months.
Strathmore has already paid $700,000 against the note, originally scheduled for completion on March 31. The final $300,000
will now be paid this month.
Strathmore's original right to convert the note to equity on July 31 remains unchanged.
In addition, it has an option, exercisable before February 29, to purchase a further 5 per cent of CommSoft for $1 million.
"CommSoft's revenues and market share are growing more rapidly than forecast, driving the need for additional working capital," said Strathmore chairman Phil Norman.
In the investment statement for Strathmore's rights issue late last year, it said CommSoft's gross revenues were expected to exceed $5 million for the year ending March 31. For the subsequent 12 months, gross revenues were expected to significantly expand on that.
Strathmore, through its subsidiary, Antipodes IT, owns 21.66 per cent of CommSoft. The annual report says the purchase agreement with CommSoft allows Strathmore at its discretion to acquire a stake of up to 31 per cent.
Last year CommSoft said it planned a United States listing after good revenue growth since 1997 when it launched SmartCharge, a call accounting product.
Mr Norman said the Australian Stock Exchange had proved very supportive of New Zealand technology companies with international products and capabilities.
Telecommunications software company Telemedia's share price had skyrocketed from $1 last year at its ASX listing to nudge $6 last month.
Any ASX listing by CommSoft will include a priority entitlement for Strathmore shareholders.
CommSoft has recently been advertising heavily for key staff before the planned listing.
Earlier this week Strathmore announced it was investing $550,000 for a 9.17 per cent stake in internet e-commerce initiative Global Online Promotions, with the option of investing a further $1.45 million in the next year to lift the stake to 33.3 per cent.
