Chrome Global swaps shares for businesses

Perth-based Chrome Global has signed a memorandum of understanding to take on the non-health-related businesses and assets of listed Australian firm Working Systems, in consideration for CGB shares.

The businesses include a branding and integrated marketing communications business, educational content and online learning environments and an e-services consulting business.

Chrome Global says the transaction will advance its revenue and earnings, secure its financial stability and enable it to realise growth targets.

"The move will also strengthen management expertise and increase sales opportunities by capitalising on Chrome's existing offices in Kuala Lumpur, Perth and Sydney with the Working Systems' offices in Singapore, Perth, Adelaide, Melbourne and Canberra," the company said in a statement.

Under the agreement Working Systems will provide a maximum $2 million line of credit to Chrome Global for future development and growth opportunities.

A formal agreement is due to be signed by the end of the month and is subject to shareholder approval.

Chrome Global was set up through the merger of three Perth-based tech companies and went public in late 1999. It has been another casualty of the downturn in tech stocks, currently trading at less than A10 cents compared with its issue price of A25 cents.

The company lost A$2.437 million in the year to the end of June 2000 but in November last year said it expected to become cash positive by the end of March 2001.

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