Content management software vendor InterX has had its shares suspended on the London Stock Exchange (LSE) following shareholder approval of the sale of the company’s main business to The Innovation Group (TiG).
Two of InterX’s directors, Mike Shinya and Philip Sant, resigned on Monday morning, after its shares were suspended. Having reached a high of £39 (€61.8) in 2000 during the height of the technology stock boom, InterX shares were suspended at just 9.75 pence (€0.16).
Following the sale, the only remaining part of InterX will be its Exemplar service, which is run by its Italian subsidiary Diligenti. InterX only owns 34% of Diligenti and should it buy back its Italian business trading in InterX stock may resume.
InterX holds options giving it the right to increase its stake in Diligenti to 95%, but its chairman Richard Jewson said it is unlikely InterX will be able to do so. The company is currently unable to provide the LSE with a positive working capital statement. On 31 March, the company reported cash holdings of £3.3 million (€5.2m), down from £6.2 million (€9.8m) at the end of the previous quarter.
In April, InterX sold its Net2020 software product to TiG for only £1.3 million (€2.1m). TiG will pay no more than £8.3 million (€13.2m) for the rest of InterX’s content management platform, known as Bladerunner.
TiG will pay £1.3 million (€2.1m) in advance, with £4 million (€6.3m) in instalments over the next two years. The balance will be dependent on sales of the product.