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IT Capital secures conditional sale of website company


Monday 26th August 2002

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IT Capital has announced plans to sell its 100 percent shareholding in Terabyte Interactive.

The company said it could not divulge the purchaser or terms of the conditional sale until it was settled on September 2.

Terabyte, a web development company, struck difficulties in the wake of the IT bust. Chief executive David McKee Wright said that IT Capital was exiting the company because it was no longer a strategic asset, not for cashflow reasons.

Previously he said Terabyte was no longer losing money but that IT Capital expected to realise an accounting loss.

The sale would leave IT Capital with its 42 percent stake in 3-D display company Deep Video Imaging, around 20 percent of software company Golden Orb, and stakes in two new investments, Sealegs and Conceptual Solutionz.

It exited its stake in Virtual Spectator in February and Streamlink was wound up in September last year.

DVI, a 3D screen developer, has won a contract in the US but is not expected to be profitable for several years.

About a month ago, IT Capital said it only had enough operating cash to continue for four weeks.

Mr McKee Wright and director Maurice Bryham put forward a $3.7 million capital raising plan, which won shareholder approval but failed to attract enough investor interest.

Instead, the company said it would proceed with two of the three planned acquisitions, 70 percent of Sealegs International and 50 percent of Conceptual Solutionz.

Mr McKee Wright said shareholders could expect an announcement on the progress of the two new companies around IT Capital's mid-year result in September or early October.

In February, the company wrote down the value of three investments by $9.7 million. In June it reported a full-year loss of $21.4 million, compared with a $4.9 million loss the previous year.

Mr McKee Wright said today's announcement signified the last of the company's restructuring.

"The company won't have any more significant changes after the sale of Terabyte."

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