Strathmore buy secures option

By FIONA ROTHERHAM

Technology investment company Strathmore Group is investing $550,000 for a 9.17 per cent stake in internet e-commerce initiative Global Online Promotions.

Strathmore has the option of investing up to $2 million in the next 12 months to raise its shareholding to 33.3 per cent. The company's value is estimated at $6 million.

Other Global Online shareholders include Eric Watson's Cullen Investments, senior management and a privately owned Melbourne-based technology company. Watson also owns nearly 20 per cent of Strathmore.

Global Online is a relatively new company founded by chairman Chris Aiken and marketing and strategy director Chris Berryman.

It has an internet product under development that will provide online solutions to the retail sector. It is expected to be ready to market in three months.

Strathmore chairman Phil Norman said that to protect Global Online's first-to-market advantage, details were being kept confidential until development was completed and partnership agreements finalised. This was likely in the second quarter.

Last week, Strathmore announced its first investment in a foreign-based company - $US1 million ($1.96 million) in Haht Software and Haht Asia, subsidiaries of North Carolina web application development and distribution group Haht Holdings.

Strathmore raised $8.8 million late last year and "still has the capacity to do further deals," Mr Norman said.

Meanwhile, Armstrong Jones yesterday announced it had reached above the 5 per cent threshold in technology company Advantage Group, which has a 20 per cent stake in Strathmore.

In a substantial security holder notice filed with the stock exchange, Armstrong Jones said it had acquired 2,810,302 shares - or 5.62 per cent of total capital - on the market. Advantage's share price last traded at $3.51.

Armstrong Jones began building the stake last September.