Source: Global Payment Technologies
Global Payment Technologies, Inc. (NASDAQ: GPTX) today announced the sale of its 50% non controlling ownership in Global Payment Technologies Australia Pty Limited (GPTA) and the sale of its 35% ownership in eCash Holdings Pty Limited (ECH).
The Company also announced that it had entered into a five (5) year exclusive distributorship with GPTA to represent the Company in Australia, New Zealand and the Pacific Rim.
The Company received $1,511,221.45 in cash on closing the sale of GPTA and will receive an additional $286,267.55 on the one year anniversary of the sale. The deferred cash payment is collateralized by an irrevocable letter of credit issued by the Australia and New Zealand Banking Group Limited. The Company also received $286,860.65 in cash for the sale of its ownership in ECH. The purchase price for each sale was based on the Company's equity in each company as of April 30, 2006.
Stephen Nevitt, President and CEO of GPT said, "We are continuing with the initiatives previously announced in an effort to refocus the Company. eCash Holdings was not a core business for GPT and had not produced the profits expected. We are pleased that the owner of GPTA has made a personal commitment to our success by purchasing our share of GPTA and entering into a 5 year exclusive distributorship agreement with GPT. He is responsible for the success the Company has enjoyed in Australia and the Pacific Rim and we look forward to many more years of growth in the region."
Mr. Nevitt continued, "The purchase price received for GPTA and eCash was within the range of values provided to the Company by an independent valuation company and provides additional liquidity for GPT. We will concentrate our efforts on our new product initiatives."