Software investors to get refund

By ELLEN READ

Slow sales and an uncertain environment for tech stocks have stymied a share offer by Carter Holt Harvey spin-off Straightedge.

Straightedge said yesterday that it had closed its Subsequent Public Offer and would refund money already received to subscribers. The offer had already been extended twice.

Chairman Marc Potter said the decision was in the best interests of investors and the company.

The New Capital Market-listing had hoped to raise $5.5 million to buy the supplier of software to the building trade.

Potter added that Carter Holt had committed to ensuring current shareholders were refunded the original issue price of their shares if desired.

The details would be announced in the next seven days. The likelihood was that the Straightedge division within Carter Holt would continue but from a public shareholder standpoint, the company would wind up.

Potter said Carter Holt had indicated it was prepared to invest more money but the Straightedge directors decided that that would make it substantially a Carter Holt, rather than public, company.

"That said, it's still a good product and potentially a good business," Potter said, adding that the decision would mean the board could spend more time focused on selling and developing the product rather than satisfying outside shareholders.

Straightedge listed on the New Capital Market in April after an initial public offer raised $600,000 from the sale of 1.2 million shares at 50c each.

The company, formerly known as Velocit-e, started as an e-commerce consultancy but now concentrates on software for the building industry.

Its products include Biz-e Builder, used in hardware stores to help customers design decks and fences, Virtual Worlds, which does a similar job for bathroom and kitchen design, and sawmill management software product Tadpole.

Straightedge is part of Carter Holt's New Ventures scheme which began 2 1/2 years ago.

Carter Holt Harvey New Ventures head Craig Knox said Carter Holt remained committed to New Ventures and to Straightedge.