STARTRACK Communications is hoping that a move from satellite technology to medical technology will provide a better future for the company.
Having sold its major operating business early this year, Startrack is planning to reinvent itself with the acquisition of medical technology firm Medepartner.
The founder of Medepartner, Carl Woodbridge, will become managing director of the company, which is looking to raise $650,000 via a share purchase plan.
Medepartner’s software is designed to improve the efficiency of processing workers’ compensation and insurance claims.
The company said it had demonstrated the ability to save 42 per cent on simple disability claims and 58 per cent on complex claims.
Medepartner’s target market will be insurance companies and major employers.
Startrack recently raised $73,800 via a placement at 0.3 cents per share and has negotiated a debt-for-equity swap to further strengthen its balance sheet.
Under the share purchase plan shares are being offered at a price of 1.3 cents per share, a substantial discount to the prevailing market price of 3 cents.
Director Peter Landau said the discount was designed to encourage as many existing shareholders as possible to participate in the share purchase plan.
The company angered many shareholders earlier this year when its main operating business was transferred to Weston Investments, a company associated with Startrack chairman John Stratton, in return for cancellation of $4 million of debt.
The Weston transaction was described as the only viable alternative to administration or liquidation of Startrack, which lost $6 million in 2001-02 and $1 million in the half-year to December 2002.
Mr Woodbridge was previously one of the founders of Freemans Australia, the largest Australian national loss adjusting company.
He also established Freemans (WA), which was sold to global loss adjusting firm GAB Robins in 1997.
GAB Robins employed Mr Woodbridge as its West Australian regional leader until June 2000, when he left to establish Medepartner.
