Selector gets underwriting support

The software group is seeking to raise $2.4 million via the issue to expand its development programme and increase its marketing budget.

Selector says a syndicate of individuals has agreed to underwrite $1.3 million of the total.

"These underwriting arrangements provide Selector Group with certainty that sufficient funds will be raised from the offer to finance the board's development plans," the company says in a statement.

Shareholders will be offered a two-for-one basis of rights to acquire an ordinary share in Selector at an issue price of $0.04 cents, together with a free option to subscribe for a further ordinary share at a strike price of $0.10 cents in July next year.

Selector Group chairman, Jack Porus, says the company wants to steer its focus away from jobs boards-related activities, because they have not provided the expected revenues.

"This will be achieved through further development of existing products as a means of adding value, launching new online products to meet anticipated demand, aggressive marketing and promotional campaigns to lift sales and the forging of strategic alliances in important markets."

Mr Porus is cautioning shareholders and investors to remain realistic in their expectations, considering the economic difficulties now being experienced in a number of international markets, following the slowdown in the United States.

However he says in spite of such economic uncertainties, the long-term prospects for the company to become a leading international supplier of recruitment and human resources software remain bright.

"There is a growing worldwide demand for the type of products developed by Selector Group, which are used to assist companies select the right people, improve on-going HR management and help individuals plan their careers.

"Many of the Selector products have been designed to be used on the Internet for ease and speed of use, giving them a distinct market advantage over competitors."

The Selector Group rights offer closes on June 15.

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