Punters who bought into technology investment company, ST Synergy Ltd, during 2006 will be feeling more than a little disappointed after its stock was suspended and its major subsidiary went into administration.
ST Synergy’s stock price has tumbled from a peak of nearly $4 in July 2006 to just 45 cents, taking it back to where it was in early 2005.
Its main asset is a 51 per cent shareholding in Perth-based, New York-run company Panorama Labs Pty Ltd, which says it is pioneering the development of magneto-photonic crystal technology.
Panorama has released a string of positive announcements over the past two years regarding progress with its technology.
In May, for instance, Panorama said it had successfully operated the world’s first magneto-photonic projector, which could be used in digital cinemas.
ST Synergy chairman John Athans, a partner at Balcatta accounting firm Athans & Taylor, said earlier this year that its “financial investment and commitment to Panorama Labs is well vindicated”.
But behind the scenes, Pano-rama Labs was facing some major management and governance issues.
Its former chief executive, J.L. Kehoe, and chief financial officer J.D. Urquhart lodged claims in the US earlier this year for an alleged breach of contract in the termination of their consultancy.
In July, ST Synergy sought to strengthen its links with Panorama by getting one of its directors, Leonard Taylor, appointed to the board of Panorama.
Two weeks later it called a trading halt, and last week said Panorama Labs had been placed into voluntary administration, but did not explain why.
It simply noted that Mr Taylor supported this move because ST Synergy “has not been able to satisfactorily resolve the administrative governance matter with the board of Panorama Labs”.
