IT Capital shareholders put in picture

By PETER GRIFFIN IT writer

IT Capital's struggle for survival could not have been more public, but now the company is baring its soul to shareholders - via email.

The beleaguered venture capitalist has emailed its shareholders defending investment and divestment decisions that have dumped web firm Terabyte, bought into rubber boat builder Sealegs and ended a deal with electric engine designer Conceptual Solutionz.

IT Capital's management duo, David McKee Wright and Maurice Bryham, revealed that the company had just over $2 million in cash at the end of last month and operating expenses were running at $60,000 to $80,000 a month.

They defended their decision to sell Terabyte, saying the company had lost $1.5 million since April last year, and was a "non-strategic asset".

The sale price of Terabyte had not been made public because a non-disclosure clause had been written into the sale agreement.

Although Terabyte's value had been written down to zero on IT Capital's books, the sale would show up as a small gain on last month's accounts.

IT Capital had changed its mind about buying 50 per cent of Conceptual Solutionz after negotiations broke down.

Disagreement had centred on developing a funding schedule based on performance milestones, bringing in an independent expert to review the technology and securing advances of funds from IT Capital against Conceptual Solutionz' intellectual property.

As for IT Capital's two investment hopefuls, Sealegs was building its third prototype and would launch a demonstrating boat next month, said the email.

Deep Video Imaging, 3-D screen developer, was "progressing steadily" in its bid to raise millions of dollars in the US and the first screens employing its technology would roll off the production line in the first half of next year.

The email said IT Capital was also keen to wash its hands of a minority shareholding in Australian web tools company Golden Orb.