Motoring Internet company Oxbridge Online`s ongoing operations rest on the completion of an international deal.
Along with year-end results that reflect a R6 million operating loss on a turnover of R467 000, Oxbridge has announced it is in negotiation with several international companies to supply business-to-consumer technology for a global automotive exchange.
The new exchange is a multinational Internet-based exchange to be launched as Autris. Oxbridge is counting on the revenue from this venture to fund its ongoing operations.
The embattled Internet company announced its auditors have qualified their report, saying the company`s ability to continue as a going concern is dependant on the successful conclusion of contacts under negotiation, the resumption of profitable operations and the continuation of existing levels of finance by its bankers and major trade creditors until the company is able to meet its obligations in the course of ordinary business.
The announcement says: "These conditions indicate the existence of material uncertainty which may cast doubt about the company`s ability to continue as a going concern."
As a result, Oxbridge has warned investors to exercise caution in share trading until the negotiations have been finalised.
The results for the year to June 2000 show a headline loss of 5.21c per share.
The company warned that it may not meet profit forecasts when it released its interim results in March.
CEO David Cattell says although the company is happy with its Web site (www.motorshow.co.za), the company is frustrated with the lack of industry consensus and finalisation of e-commerce strategy.
Oxbridge has also reconstituted it board of directors.
The share price has been hovering around the 2c mark after a 12-month high of 70c. By 11am today, R3 000 worth of shares had been traded to push the counter up 50% to 3c.
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