Y2KTec has announced its intention to sell its business for R500 000 and become a cash shell company.
The continued delay of the release of Y2KTec`s Labour Rites program and its Windows version of the Payslyp package has drained the company`s resources and has forced the decision to sell the business.
The delay in the release of the programs resulted in David Black leaving the company and a threat of legal action between Y2KTec`s remaining board and the ex-CEO.
The dispute was settled out of court, but it wasn`t long before the company was faced with the loss of a second CEO, when six months later Russell Roth resigned.
The Y2KTec operating subsidiary company will be sold to Nomalanga Trading Enterprise to be settled with a R500 000 cash payment over three months.
The Y2KTec Johannesburg office has been closed since March, but the company says even this saving in operating costs would not save the company.
If the necessary conditions are met, including the nod of both the JSE and Y2KTec shareholders, the company will switch to the cash companies section of the JSE.
An analyst says the company has seen the writing on the wall for some time and the move comes as no surprise. Y2KTec`s share price has been languishing at 3c with no sales for some time and news of the sale did little to change it. .
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