Technology investor ST Synergy Ltd has vowed to continue supporting the commercial development of its subsidiary Panorama Labs Pty Ltd, after striking a deal to buy its assets for just $1.35 million.
ST pumped $12.5 million into Panorama over the past two years, only for the company to go into liquidation.
ST director Leonard Taylor said the New York management team that had been running Panorama had spent too much time marketing its product.
“They didn’t spend the money where it should have been spent,” Mr Taylor told WA Business News.
“A lot of research and development still needs to be done. We don’t have a marketable product yet.”
Panorama was established in 2003 to commercialise photonics technology developed at Edith Cowan University.
Its technology reached proof of concept stage in mid 2005 and one year later the company said it had completed development of a prototype display.
Panorama released a series of upbeat announcements this year, including claims that it had successfully operated the world’s first magneto-photonic projector, to be used with digital images. Its upbeat progress reports came to a halt in July when the company was placed in administration.
Mr Taylor, a partner at accounting firm Athans & Taylor, proposed a deed of company arrangement at a creditors’ meeting last month, which he said would have resulted in creditors being paid in full.
The proposal was rejected, which resulted in Panorama being placed in liquidation and its assets sold to the highest bidder.
ST, which had built up a 51 per cent stake in Panorama, will pay for the assets by issuing 12-month convertible notes with a conversion price of 30 cents.
That is a far cry from ST’s peak share price of $4 recorded last year.
It is also well below the price at which ST shareholders subscribed for new shares.
ST raised $2.7 million at $2 per share in November last year and a further $1.4 million at $1.50 per share in February.
Mr Taylor said ST was in negotiations with staff and suppliers, including researchers, to further develop Panorama’s magneto photonic and fibre device technology.
The business will in future be managed from Perth.