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'Near term profitability' claim from IT Capital

By Phil Boeyen, ShareChat Business News Editor

Monday 14th August 2000

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Tech company IT Capital says its near-term profitability is assured following the sale of its stake in e-commerce company, exo-net International.

The buyer is Australian listed tech-co Solution 6, who will pay $9.6 million in cash and $3.1 million in Solution 6 shares for the IT Capital shareholding.

Other exo-net investors are also selling their holdings to Solution 6, which will then own exo-net outright.

IT Capital's CEO, Jeff Dittus, says the sale is evidence of his company's ability to successfully grow Australasian companies while generating exceptional returns for shareholders.

"The proceeds from this sale further strengthens our financial position and ensures ITC's near-term profitability."

ITC purchased its 35% stake in exo-net for $1.5 million. Settlement of the sale is expected on August 18th.

The company says it is the second successful exit of a company following the realisation associated with BMC Media in January 2000. Putting those two deals together, it says it has converted $1.8 million of capital into $13.6 million.

The New Zealand market appeared disinterested in news of the much-rumoured exo-net sale on Monday, with ITC shares closing down one cent at 36 cents.

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