- Technology company Thred (THD) has announced the reacquisition of its former subsidiary, AR Technologies (ARTech) and its related businesses
- In March 2019, Thred sold 80 per cent of ARTech to Project Savvy, and sold the Sweep Business to ARTech
- Thred later helped ARTech to develop and commercialise the Sweep Business through a loan, which has remained unpaid
- The company has repurchased the 80 per cent interest in ARTech for $1, transferring ownership back to Thred
- Thred shares have been suspended since September last year, priced at 0.2 cents per share
Technology company Thred (THD) has announced the reacquisition of its former subsidiary, AR Technologies (ARTech) and its related businesses.
In March 2019, the company completed a transaction in which it sold 80 per cent of ARTech to Project Savvy. Thred maintained a 20 per cent interest in its former subsidiary from this point onward.
During the transaction, the company also sold its Sweep app business to ARTech for a sum of $700,000. ARTech was supposed to pay this amount in quarterly instalments, consisting of 10 per cent of its quarterly trading revenues until paid in full.
However, Thred has not received any payment for the Sweep business from ARTech since that time.
In July 2019, the company and ARTech entered into a loan facility agreement and general security deed. Under the agreement, Thred loaned ARTech $105,000 at 10 per cent interest per annum, repayable 90 days after the first drawdown.
The loan was to help in the development and commercialisation of the Sweep app business. In February 2020, Thred doubled down on its investment into ARTech by adding a further $10,000 to the loan facility.
In addition to the initial purchase amount of $700,000, ARTech also hasn’t paid back any of the loaned money. While Thred could have pursued a formal enforcement process under the general security deed, the company opted for a different approach.
Thred offered to buy back the 80 per cent of ARTech which it did not own for an aggregate $1. The unrelated ARTech shareholders accepted the offer, returning full ownership of ARTech to Thred.
This transference includes the Sweep app business, which Thred’s directors intend to review for potential purchasers.
Thred shares have been suspended since September last year, priced at 0.2 cents per share.