The intangible assets of IP-security systems maker Zylotech have been sold to a WA broker with links to the mining industry, while its major creditor has taken control of the company's physical assets.
Andrew Needham, administrator at HBL Mann Judd told CRN the broker planned to recapitalise the company and has indicated that it has clients in the mining exploration industry that would be interested in using the shell of the company for an ASX listing.
Meanwhile, Zylotech major shareholder Mal Fraser-Clay (CEO of MVSS and Deancorp) will trade his debts for Zylotech's stock and equipment.
"In consideration for [hisdebts], he has been granted an option to purchase Zylotech's intellectual property," Needham said.
"This will only occur after the successful recapitalisation, and in the meantime he retains his security over all of the assets and undertaking of the company."
Fraser-Clay said he made the only bid for Zylotech's equipment and stock.
Multi Vendor Support Services, a distributor and support agent of third-party HP and Sun Unix products, will "now migrate into the digital security software industry and we will be approaching all old Zylotech customers," Fraser-Clay said.
Fraser-Clay had played a part ushering the last three directors on to Zylotech's board but said they weren't his "puppets".
"The directors I promoted did the best they could, they just ran out of time and money," he said.
His refusal to fund Zylotech propelled its directors to call in the administrators.
At the time, Fraser-Clay said he was "prepared to continue to fund and support the company".
"Without the CEO's vision and a go to market strategy after five months of being in control, I could not afford to invest any more time or funds," he said.
"I believe my stance then triggered the actions that took place."
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