Elexir SA in liquidation

By Iain Scott, ITWeb group consulting editor

Johannesburg, 06 May 2005

Struggling JSE-listed Elexir Technology Holdings says subsidiary Elexir SA has been placed into voluntary liquidation as it is insolvent.

Elexir CEO James Casey could not be reached for comment this morning and the receptionist at Elexir said none of the directors were in.

The group adds in a statement: "Elexir has entered into discussions regarding the disposal of the remaining operating businesses of the company that comprise of all the trading activities of the group."

Elexir was recently forced to withdraw and restate its results for the year to August 2004, after transgressing JSE regulations by not seeking shareholder approval before selling a business unit to Securicom.

The deal was classified as a related party transaction because Securicom director Brett Casey is a former director of Elexir.

Elexir received shareholder approval only in February, more than a year after the deal became effective.

The restated results showed a loss of R3.12 million for the period, compared with a previously stated profit of R2.34 million.

The restated figures also showed a net asset value of -1.83c a share, compared with a positive value of 2.53c a share in the previously reported figures. This means that without the sale to Securicom, Elexir was technically insolvent.