E-cademy swings from online learning to corporate market

By PETER GRIFFIN IT writer

Online learning outfit E-cademy is taking the "e" out of its business to become a corporate trainer after poor demand for its online services.

Following last year's fight for control of E-cademy by Australian company MatrixIP and prospective investor Cube Capital, E-cademy is making a second corporate training acquisition, picking up Champagne Consultants for between $750,000 and $1.25 million. In July, it bought Australian corporate training company Performance Edge Systems.

The Champagne acquisition, approved this week, will be paid for in cash and shares. E-cademy chairman Keith Jackson said the exact sum would be set by Champagne's performance over the next two years.

A resolution to raise $1.1 million through the issue of shares also was passed, a move that will further dilute E-cademy stock. There are already nearly a billion shares on issue. The company's market capitalisation is $3.9 million. A few individuals, including Melbourne-based director Paul Choiselat, own most of the shares.

Jackson said E-cademy estimating that providing educational services online would account for only 5 per cent of business in future.

"E-learning has taken longer to develop than originally thought. The companies we've acquired fundamentally do face-to-face training."

It has had several high-level management departures, the latest Australian director Darron Passlow, and looks in dire financial shape.

Shareholders approved an interest-free $300,000 loan facility from Choiselat's company, Beaconwood Securities. It and part of the $1.1 million share issue would tide E-cademy over until conditions improved, Jackson said.

E-cademy had posted a $425,000 loss in the six months ending September 30, and would finish the full year in the red. It would become cashflow positive next year.