Structural Monitoring terminates deal

13/04/2010 - 11:55

Bookmark

Save articles for future reference.

Technology company Structural Monitoring Systems is looking at capital raising options after a partnership agreement, which was to underpin future revenue, was terminated.

Technology company Structural Monitoring Systems is looking at capital raising options after a partnership agreement, which was to underpin future revenue, was terminated.

The Osborne Park-based company today said renegotiations with an unnamed US aerospace company were inconclusive, and both parties had agreed to sever the relationship.

"The primary reason why the renegotiation process resulted in this outcome was that the new offer presented by the company did not provide sufficient assurance of future revenue streams to SMN as a supplier to the company," Structural said in a statement.

Structural had entered into an exclusive partnership agreement with the US company to develop and commercialise the CVM technology in the civil and defence aerospace sectors.

The CVM technology is used to detect structural flaws in aircraft fuselage.

Structural today said it had started talks with parties with regards to a capital raising and potential partnerships to provide working capital required to deliver orders and for the company to remain operational.

Last month, Structural announced it had about $256,000 in orders.

Shares in Structural slumped 0.4c cents, or 29 per cent, to one cent at 13:34 AEST.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options