PracticePeople In PracticeBright Station to sell Boo.com platform

Bright Station to sell Boo.com platform

E-business enabler Bright Station may be forced to sell the technology platform purchased from Boo.com last year, after running into financial difficulties.

The company bought Boo’s three-dimensional modelling software for just Pounds 250,000, a fraction of the amount it cost to build, after the collapse of the European e-retailer.

But Bright Station is now trying to find a buyer for its e-commerce platform Sparza, which holds the Boo.com technology, in order to reduce overheads and focus on SmartLogik, its knowledge management tool.

A statement from the company’s board said the group was in ‘active discussions with potential investors’ in order to obtain additional funding to ‘secure the group’s financial position’.

The company is currently considering a number of financing options, including one with investment bank Credit Suisse First Boston, based on Bright Station’s share price keeping the company capitalised above Pounds 30m.

But a tumbling share price may hamper re-financing plans. Today the share price was down 25% at 11.5p after falling 30% yesterday, well below the Pounds 30m mark.

A dramatic drop in the plc’s cash resources to Pounds 7.4m, from Pounds 16.3m at the end of 2000 was blamed for the collapse of the stock price and yesterday Bright Station admitted it could not continue to consume cash at the current rate.

A complete re-shuffle is expected after sufficient financing has been secured.

Links

KPMG finds buyers for boo.com

Liquidator called in at Boo.com

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