C@ secures $500,000 loan amid revenue/management issues

Perth-based optical marketing group C@ Ltd have secured a draw down loan facility of $500,000 to counter falling revenue, following the resignation of its chief executive.

The company, which listed on the ASX in December, announced today that it had experienced delays in generating revenue from its current business model, as well as what it called "an overrun in expenditure".

C@ had generated only $32,000 in revenue in the June quarter of this year.

To counter this, the C@ board is undertaking a review of operating expenditure and other options for deriving revenue from current stock holdings.

It is hoped that a reduction in operating expenses and the additional funding from the loan will help to fortify current working capital reserves. The loan from the Deuterium Fund a subsidiary of substantial shareholder Marketech, is subject to a 24 month term, a 9 per cent interest rate and is convertible into fully paid ordinary shares.

Yesterday's announcement of the resignations from the board of chief executive Andrew Gay and Kevin Holland includes the waiver of any termination payments and the cancellation of all founder options issued at the company's listing.

They have been replaced on the board by Marketech director James Martin and Gordon Thompson, who is a non-executive director of Dye Solar Cell technology developer Dyesol Ltd.