Software millionaire hits hazards as he dices with several projects

By Nick Stride

Friday 11th June 2004

Lithium maker Ilion, poised between success and failure, has a big chunk of entrepreneur Murray Haszard's fortune riding on its slender shoulders.

Haszard, who made $35 million when he sold his Ghost disk cloning software to Symantec in 1998, has invested more than $20 million in Ilion. He holds 53.1%.

In the December 2003 year it lost $2.7 million, taking its accumulated losses to $32.7 million.

Last September the company raised $200,000 in new capital from its shareholders and took a $1 million loan from Haszard, its chairman.

The loan was secured with Ilion's assets and is repayable in September next year.

If the money is not available Haszard may, if he wishes, exercise his security, effectively taking 100% of the company and leaving other shareholders who include founder Robin Johannink and Shareholders Association chairman Bruce Sheppard with nothing.

Questioned by Sheppard at yesterday's annual meeting about his intentions should the loan default, Haszard said he hadn't yet given the matter much thought.

He had considered extending the loan.

"So long as there's a chance of making sales I'd like to keep the company going."

Ilion has only one other director, Australia-based Graham Brand.

The board acknowledged Sheppard's concern that, should a conflict of interest arise, Brand would find himself in an uncomfortable position.

While Haszard has taken a considerable wealth hit on Ilion, he may yet make a comeback.

He told Ilion shareholders the next six months would be make or break if it achieved the sales it was hoping for, it would survive.

Associates say his "Ghost 2" company, Sprite Software, may spark this year. Another Haszard software company, Skunklabs, is not far behind.

Infrastructure software developer Connexionz, of which he owns 8.9%, also looks to be coming right after losing $1 million in the March 2003 year.

Less successful has been money invested in Airmaster Propellers, set up to invent a new aircraft propeller.

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