Indranet seeking cash for launch

Indranet Technologies is making a $5 million public share offer to fund the launch of its wireless broadband network product FraMe.

It will be introduced first in New Zealand, Australia and the Pacific Islands.

The chief executive of the technology innovator, John King, said he was pleased with the "continuing high level of interest" shown by investors as FraMe approached the market after five years of development.

King said the present issue, after a number of previous issues, did not raise any concerns about the future of the company.

"I think people occasionally like to try to make something of it. I think it's entirely normal; companies will raise funds according to their needs from time to time.

"Previous share issues have been successful in that they funded the development of the technology and we're now at the point of commercial realisation. Clearly they've done their job," King said.

Indranet's "fractal mesh" network platform is built on customer-based equipment called minders. Minders communicate wirelessly with their nearest neighbours and with each other throughout the network.

Network lines owner Electricity Ashburton, an Indranet test site for about 18 months, uses the technology to manage information from substation to control centre.

General manager Gordon Guthrie said the system was more efficient and its cost was about half that of traditional communications equipment. "It's not working at this stage to its full potential and so we are developing it as we move along.

"I wouldn't say it's actually a foolproof commercially viable thing yet; perhaps they're not far away," Guthrie said.

In January two shareholders filed legal proceedings against Indranet in a US court claiming misrepresentation and seeking repayment of a US$300,000 ($415,000) investment plus interest and damages.

King said he was comfortable that the claim was without merit.

"You have to deal with these things properly and we are completely above board."Indranet also claims technology for supercomputing, advanced radio transmission, co-generation of electricity and pollution-free transport.