Q SECURITY Systems was placed into voluntary administration April 30 by the Q Technology Group board of directors after continued poor sales results.
Q Technology Group Ltd quarterly cash flow report ending March 31 showing net cash inflow of $A0.324m – the cash flow from operations was a net outflow of $0.258m, offset by a net inflow from financing activities of $0.582m.
According to the board, trading performance for Q2 deteriorated through the end of quarter through delays to customer projects. In response to the increased losses by QSS subsidiary, the board and management set about to review the operations and at the same time explore a range of options to recapitalise the business. Proposals were received that would have seen the business restructured and retained but binding terms were not negotiated.
Accordingly, without access to sufficient additional capital to fund the needs of the operating business, the board of QSS resolved to appoint a voluntary administrator with immediate effect on April 30. In parallel with the decision to appoint a VA to the operating subsidiary, the board of QTG accepted a recapitalisation proposal which provides for the recapitalisation and maintenance of the public company for a potential reverse takeover to be sourced.
The proposal will raise $1m via a placement and fully underwritten rights issue. The details of future capital raising processes and target entities for reverse takeover using the shell will be advised.
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