Intellect resumes Cadmus talks

PERTH-BASED electronic payments technology company, Intellect Holdings, has resumed talks with New Zealand’s Cadmus Technology Ltd over a merger of the two businesses. Intellect has also announced a new $11 million debt facility, which will be used to retire $6 million of existing short-term funding and provide the company with working capital required to meet its increasing order book and large prospective contracts it is currently pursuing. “We are pleased with the significant uptake in the order levels that we have seen in recent months,” Intellect chairman Warren McLeland said. “We are confident that this new facility will allow the company to continue on this path.” 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 more than $20 million. Intellect said the merger negotiations were delayed during the Christmas break to allow each company the opportunity to carry out further due diligence.