Capital vital for Indranet

Indranet Technologies of Christchurch might be unable to continue in business if it cannot raise further capital, say its directors and auditors.

The company made a loss of $4.33 million in the year ended December 31. Following a loss of $2.25 million in 2000, total losses are now $8.59 million since being formed in early 1998.

Its annual financial statement showed that Indranet had just $1977 in cash among its current assets of $93,786. That was against liabilities of $235,000.

Just before balance date, chairman Russell Fitts made an interest-free loan of $10,000 to the company.

Indranet Technologies had to be prompted by the Companies Office to file its financial statement, which it did on July 9.

It has made several issues of shares to the public, starting in 1998.

At least $9.3 million has been raised in that way, out of total share capital of about $9.9 million. There are believed to be about 2700 public shareholders.

The directors, who did not take part in those issues, have retained an 83.16 per cent shareholding in the company - based on the intellectual base they built up. Indranet's main project is the development of wireless communications technology, and it also has an investment in a venture to develop cars powered by compressed air.

Fitts is in Europe and could not be contacted.

In the auditors' report, dated May 28, Deloitte Touche Tohmatsu said there was a fundamental uncertainty over Indranet.

The directors had said that if Indranet was unable to raise further capital "it may be unable to continue as a going concern and may be required to realise its assets".

- NZPA