Planit Technology Holdings subsidiary Billcad will sell part of its business to cancel its parent`s debt, while Index Capital will assume management of Planit.
Planit has announced to investors that Billcad will sell non-core assets HKC Systems and Billcost Systems to Multisoft SA for R4.4 million.
The deal will be settled by Multisoft in either cash or Planit shares by no later than 31 August 2002. Should the Planit share price - currently trading at 4c - rise to 16c before that date, Planit may exercise a call on the payment.
The company also announced it would be issuing 282 million additional shares to the group`s primary banker, Integrity Holdings, the holding company of Multisoft, and Index Capital Partners.
Planit`s banker, Absa, has agreed to convert debt of R4.1 million into 82 million Planit shares at 5c per share.
An additional 100 million shares will be issued in tranches, and in accordance to performance, to Index Capital Partners, which has taken over management and is implementing a strategy for the re-capitalisation and turnaround of the group, for a fee of R5 million.
According to Planit CEO Dale Packham, all Planit businesses, with the exception of I-Web (formerly South African Business Exchange), are cash positive. He expects I-Web to reach break-even by May.
Packham also says the group is eyeing some strategic acquisitions and is considering expanding its business into the UK and Ireland.
The group warned investors it is still trading under cautionary.
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