Perth technology company Intellect Holdings Ltd announced today it had resumed talks with New Zealand's Cadmus Technology Ltd over a merger of the two businesses.
Perth technology company Intellect Holdings Ltd announced today it had resumed talks with New Zealand's Cadmus Technology Ltd over a merger of the two businesses.
It also announced a new debt facility to support an increasing order book and large prospective contracts.
A company announcement is pasted below:
INTELLECT ANNOUNCES INCREASED ORDER BOOK, NEW FACILITY TO FUND ORDER BOOK
AND CADMUS UPDATE
Perth, 16 February 2007 - The Directors of Intellect Holdings Limited (ASX:IHG) ("Intellect") today
announced that they had secured a new funding facility to finance the increasing order book for the
Group.
The new Facility totals $11 million and is available to 30 June 2008. The funds will be used to retire $6
million of existing short term funding and provide the Company with the working capital required to
meet the increasing order book and large prospective contracts the Company is currently pursuing.
"We are pleased with the significant uptake in the order levels that we have seen in recent months.
We are confident that this new facility will allow the company to continue on this path," said Mr.
Warren McLeland, Chairman.
"This funding arrangement, together with increased efficiencies in the manufacturing supply chain, will
allow the company to respond better and faster to delivery and service expectations in the market,
with both new and traditional customers," said Pieter Marx, Intellect International's Managing Director.
Recent orders include 15,000 Presto units from customers in Asia, Latin America and Europe.
In addition the Company is in the process of delivering 3,000 units to a customer in the Middle East
which is expected to lead to further orders of 50,000 units. A second Middle East order of 50,000 units
is also being negotiated. These contracts have an estimated value of over $20 million.
The Company also wishes to update the market in respect to negotiations with Cadmus Technology
Limited (NZX:CTL) ("Cadmus"). Intellect and Cadmus have previously announced that they were
negotiating the sale of Intellect's operating subsidiary, Intellect International, to Cadmus in exchange
for shares in Cadmus. The negotiations were delayed during the Christmas break and to allow each
Company the opportunity to carry out further due diligence in respect to the transaction. Intellect also
sought to finalise its new funding facility during this period. Discussions are continuing between the
parties with a view to agreeing the final terms of the transaction. The market will be kept informed of
any further developments.
