ASX-listed Xped subsidiary expected to be wound up
A subsidiary of ASX-listed technology company Xped is expected to be wound up next month after failing to pay rent for its Adelaide premises. Giuseppe Tauriello
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April 13, 2021 - 12:28PM
The Australian Business Network
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Former chief executive and director of Xped, John Schultz, recently resigned from the company’s board. He is pictured here with the company’s previous home-hub technology.
A subsidiary of ASX-listed tech minnow Xped is expected to be wound up next month after failing to pay rent for its Adelaide premises.
Xped, which develops communications technologies for the healthcare sector, was locked out of its Adelaide office in February last year before its assets were distrained and sold off by landlord Tabgold Pty Ltd.
Tabgold has now brought a winding up application against Xped Corporation - the Xped subsidiary responsible for paying rent at the Wellington Centre offices in Adelaide’s north-eastern suburbs.
Griffins Lawyers managing partner Greg Griffin, who’s representing Tabgold in the matter, said the lease was terminated early last year, with Xped Corporation owing around $78,000 in unpaid rent.
“I’m amazed a subsidiary of a listed company is allowed to go into liquidation,” he said.
“They’ve had an opportunity to fix it and but in end you have to take a stand and say enough is enough. I’m staggered it’s got this far.”
Xped’s main business unit is its JCT Healthcare business, which it says provides “innovative technology solutions for the healthcare sector’’, including nurse call hardware and software solutions.
The company reported a half-year profit of $873,782 for the six months to December, but after removing one-off items, it fell to a loss of $357,757 and a net cash outflow of $377,020.
That prompted auditor Pitcher Partners to include a going concern note in its report, casting doubt over its ability to continue to trade as a going concern. Xped has had “going concern” notices in its past two full year financial reports and was suspended from trade in May last year for failure to lodge a periodic report.
The company has also been through several staff members in recent months, including Cecil Te Hwai Ho who resigned as interim chief financial officer last month after resigning from the board in December.
Former chief executive John Schultz also stepped down as a director in December.
To improve its working capital position, Xped has pledged to reduce R&D expenditure, closely monitor the group’s cash burn each month and explore M&A and capital raising opportunities.
At an extraordinary general meeting to be held on Wednesday, shareholders will vote on plans to issue 200 million shares, valued at $200,000, to New York-based Mercer Street Global Opportunity fund. More Coverage
Tech minnow faces rare ‘third strike’ voteXped’s auditors flag worries over its finances
A second resolution put to shareholders would allow $200,000 worth of convertible notes to be converted to shares, while the company is also seeking to change its name to Oakridge International Limited, to “better reflect the nature and strategic value of the operations”.
The winding up application will be heard in the Federal Court on May 26. Xped has been contacted for comment.
XPE Price at posting:
0.3¢ Sentiment: Sell Disclosure: Not Held
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