I wonder how Ian Porter feels about these news stories now???? And what about Mr Unterwegners comments about the "benefits" of military spectrum???
QuikTrak in second China security deal
Email Print Normal font Large font By Ian Porter
December 19, 2005
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■The contract will cover Hubei province, which has 67 million people.
■QuikTrak secured $4 million of funding from a Hong Kong company.
VEHICLE tracking and security systems company QuikTrak Networks has bounced back from its recent reversals to announce the winning of a second large contract in China.
In addition, QuikTrak directors have organised a second capital raising of $4 million following the cancellation last month of a planned placement to Thorney Investments.
Thorney withdrew from a $4 million placement at 35¢ a share after QuikTrak's controlling shareholder and chief executive, Mark Pallister, was charged with fraud over matters concerning one of his private companies.
Mr Pallister resigned as a director and executive but continued as a consultant with QuikTrak. His family trust subsequently applied for the shares allocated to Thorney, and shareholders will meet early in 2006 to consider the placement.
While QuikTrak directors have yet to calculate the numbers in the new China contract, executive chairman Andrew Unterweger said it looked like the new deal would match the earlier contract for revenue.
QuikTrak directors also admitted to an error of omission in the first contract, which was for the supply of a monitoring system and monitoring services for the city of Beijing.
At the time, directors said the Beijing contract would be worth $380 million over five years. On Friday, they announced the contract was actually worth $US380 million ($A510 million).
Dr Unterweger said the second China contract was for the coverage of the whole of Hubei province, on the Yangtse River in the middle of China. Hubei province has a population of 67 million people and eight cities, each with more than 3 million people.
QuikTrak's Chinese partner, China Alarm Holdings, believes the Hubei contract will require around 3 million transponders. These are attached to assets such as cars and enable them to be located rapidly if stolen.
"It does change our business model slightly," Dr Unterweger said. "Rather than doing cities, we will change to a provincial focus. We'll just scale up a bit."
QuikTrak would also be able to plan for a complete coverage of China, as the central Government has granted the company a slice of its military radio spectrum.
"That's a major benefit," Dr Unterweger said. "It's military spectrum so there is no 'noise' in it, and that makes a huge difference in how far you can throw a signal."
He said directors had arranged a second share placement, this time with an investment syndicate based in Hong Kong, Apex Tech Asia Corporation. Apex Tech will subscribe for 13.3 million shares at 30¢ each.
The reporter owns QuikTrak shares.
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