Genie runs out of wishes

By Phil Boeyen, ShareChat Business News Editor

Tuesday 2nd October 2001

One of tech company Strathmore's (NZSE: SMR) biggest investments has been hit by the tough venture capital market.

Strathmore has reported that US-based software company, Genie Systems, has been placed in receivership by two of its second debenture holders.

Strathmore paid $3.4 million for its 16% holding in Genie Systems, a company which has offices in the US, Australia and New Zealand and once offered a promising future with its OrderWare e-commerce-focused software.

The last time SMR reported on its investment was at its half-year result in April when it said that Genie had established a beach head in Asia with a major Singaporean partner and was closing sales in the US.

Strathmore chief, Phil Norman, says the receivership is a result of Genie's inability to attract additional venture funding in the current difficult and uncertain market conditions.

"Strathmore is awaiting advice from the receiver as to the future prospects of the company," he says.

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