Quadtel resurrection falls through

ASX-listed Wytomic –- formerly Quadtel –- and mobile applications developer Original Spin have terminated a multimillion share purchase agreement that was to resurrect Brisbane-based Quadtel in a new guise.

Bruce Ind, director and company secretary at Wytomic, said the four directors of the former niche software distributor and re-publisher were seeking other options to raise capital after the Original Spin deal collapsed 2 April.

Quadtel had signed an agreement 12 December 2003 -- six months after entering administration -- to acquire 100 percent of Original Spin and had re-named the shelf company Wytomic in anticipation of participating in the ebullient mobile and wireless market.

'That actual deal has fallen through,' Ind said. 'But it's fairly open-ended at this stage. We need to back another company into it.'

He would not give further details on how much funding the Original Spin deal would have provided or why the deal had fallen through.

'It would have been enough to get ... through the year. It might be that the next deal we do might be cashflow-positive from day one,' Ind said.

However, a statement released to the ASX said that the conditions for purchase completion had not been met by the deadline of 31 March 2004.

Wytomic was to issue 24.5 million consolidated shares to Original Spin and had as a result entered into a mezzanine deal with London Broking Services to raise a total of $3.16 million. At least $700,000 had been raised by 11 February, a company statement said.

Ind said Wytomic would consider other deals or quite different deals that would help the company begin trading again -– and they need not necessarily be offers from technology companies.

'It might be a mining company. It could be anything at this stage,' he said.

The name Wytomic, which had been taken on in anticipation of the Original Spin deal, was also up in the air.

Quadtel went into administration May 2003 after its board denied further funding to subsidiaries Quadtel International and software distributor Marketing Results.

Marketing Results has since been acquired by Phoenix IT.

The subsidiaries officially went into liquidation on 12 July and by November the two trading subsidiaries' liquidator got creditors' approval to compromise any of those subsidiaries' debts, a company statement said at the time.

Quadtel had appointed Claymore Capital to provide corporate advice and a strategic direction for the operation.

The company reported a loss before income tax for the half-year ended 31 December 2003 of $371,459, compared to a loss for the six months ending 30 June 2003 of $1.76 million.

Quadtel did not trade in the 31 December period, so the losses were from its re-structure attempt, the company said.