Qixel listing cancelled in tough tech market

By Phil Boeyen, ShareChat Business News Editor

Monday 27th November 2000

The Eric Watson-related internet investment company, Qixel Capital, will no longer seek a Nasdaq listing and is transferring its Australasian tech investments back to its principal shareholders.

Qixel was set up a year ago to look at an IPO on the Nasdaq, and held shareholdings in Advantage Group (NZSE: ADV), gen-i Limited, and Auldhouse Computer Training.

Cullen Executive Chairman, Eric Watson, says the decision to redistribute the investments takes into account the changing focus of US capital markets.

"Earlier this year we identified an opportunity to establish an international Internet investment company in which to aggregate e-commerce assets, acquire scale and take it to IPO on the Nasdaq," says Watson. "That situation no longer applies."

"Wealth creation in this sector of the market now happens via direct participation in companies aggressively pursuing cashflows and profits rather than by aggregating assets and offering them to the market."

Mr Watson says redistributing Qixel's holdings means each of the principal shareholders will be able to increase their focus on individual company performance and profitability, and help individual companies to grow.

Following the investment transfer Eric Watson interests hold an 18.8% stake in Advantage Group, Evan Christian family interests hold 4% and Nick Gordon interests hold 3.6% of the tech company.

The Qixel Capital Group will be retained under the control of Watson interests and the company will continue to operate as a private vehicle for international investment and venture capital activities.

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