Wavenet sells subsidiary for over $1.1m

Burswood based Wavenet International Ltd has sold its 100 per cent owned subsidiary, Wavenet Technology Pty Ltd for an upfront payment of $585,372, with a further payment of up to $563,174 to be paid in the next 30 days.

Sold to Swedish company Mobitex Technology AB, a further three annual payments of $250,000 will also be payable to the company, subject to grant applications and modem sales over the ensuing three to four years.

Full announcement below:

The Board of Wavenet International Limited (ASX: WAL) is pleased to advise that the proposed sale of the Company's 100% owned subsidiary, Wavenet Technology Pty Ltd, to Mobitex Technology AB of Sweden was finalised effective 16 May 2008, with settlement of an agreed upfront payment of $585,372. A further payment of up to $563,174 will be paid to the Company within the next 30 days.
A further three annual payments of $250,000 commencing 30 June 2008 are also payable to the Company. Subject to successful grant applications and achieving benchmark modem sales over the ensuing 3 to 4 years, the Company can earn a further total payment of $1,250,000.
The sale of the Wavenet Technology business was approved by shareholders at a general meeting held on 8 May 2008.