Selector issue shortfall

By PETER GRIFFIN

Directors of the software development company Selector Group will be among a handful of individuals expected to cover a shortfall of around $1.2 million, as the company's rights issue closed heavily undersubscribed.

Selector, which designs online software for recruitment and staff management, had sought to raise $2.45 million through the issue of around 61 million shares, exercisable for one ordinary share and one option.

The share issue was underwritten to the tune of $1.3 million. Some of the underwriters have already taken up a bit of the slack by taking new shares and options but there is still $791,048 outstanding.

Organising broker JBWere was not among the syndicate of underwriters, which includes directors Robin Mudgeway and Anthony Bishop and Selector's chairman, Jack Porus. The directors will be expected to take up between $20,000 and $90,000 worth of new shares.

Mr Porus said the shortfall would not affect the company's plans to develop its marketing strategy further afield.

And while enthusiasm for the share issue would not have been substantially affected by the company's announcement of a full-year loss of $1.729 million to the year ended March, released to the Stock Exchange last Friday, the disappointing result comes as investors shy further away from small tech stocks.

Mr Porus said he expected the company to break even or produce a surplus in the next financial year.

News of the issue result came as IT company Advantage Group revealed it would complete its $4.3 million acquisition of internet business Campbell Pope through a share rather than cash transaction.

Advantage's chief financial officer, Stewart McKenzie, said the $750,000 transaction, to be completed by the end of September, suited both parties and would relieve pressure on Advantage's cash flows.

Advantage shares closed at 59c yesterday, further away than ever from the peak of $5.65 reached in April last year. Selector Group shares closed at 4c.