Singapore's CET Technologies today said it had invested $1.2 Million in Cadmus Technology Ltd to take a 9.9 per cent stake in the eftpos machine maker.
CET has agreed to buy 16 million new Cadmus shares at 7.5 cents per share compared with Friday's price of 11.1 cents.
Cadmus shares were up
nearly 2 cents today at 13 cents. The stock has risen from 6 cents in late April but is down from 17 cents a year ago.
The agreement is subject to shareholders' approval, which will be sought at the annual meeting scheduled for early October. The share issue price was based on the average share price for the 35-day period prior to the agreement.
CET is a wholly owned subsidiary of Singapore Technologies Electronics, the electronics arm of Singapore Technologies Engineering, the largest engineering company listed on the Singapore Exchange.
Under the agreement, CET is entitled to maintain its current level of investment in Cadmus through any subsequent capital raising activities for three years.
Cadmus has developed its own intellectual property in eftpos terminal hardware, industrial design and software.
The companies said in a joint statement that the agreement would see CET take a "strategic" role in assisting Cadmus market its products into targeted Asian countries.
CET was already established as a regional leader in retail remote payments technology. It planned to integrated Cadmus's technology into in-house systems, which are mainly used in vehicles.
Cadmus chairman Keith Phillips said the agreement would underpin the future growth of the Cadmus.
"We view this as a tremendous endorsement of Cadmus' expertise, product set and intellectual property. It also aligns us with an extremely influential player in the fast-growing Singaporean market, providing us with a long-term shareholder who both shares our vision and will support our expansion plans."
- NZPA
