Administrators have put education software provide MXL Consolidated up for sale after the company collapsed earlier this month, leaving a cloud over the future of its listed parent company Entellect Solutions.
Administrator Geoff Reidy from accounting firm Rodgers Reidy was appointed to MXL Consolidated on April 9 and has advertised the business for sale today.
MXL’s main product eMinerva is a web-based student administration platform used by schools, universities and training colleges, including the Tasmanian education department and Brisbane Catholic Education.
The company is owned by ASX-listed Entellect Solutions, which is based in Sydney. MXL Consolidated is the main trading subsidiary of Entellect, and the listed company’s shares were suspended when MXL was placed in administration.
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MKL’s collapse occurred after Entellect Solutions failed to complete a $26.5 million capital raising which was intended to fund the acquisition of a Canadian education software company, and the acquisition of a license for another education software product from listed IT company CSG.
Both deals have now fallen over as a result of the failed capital raising.
Entellect Solutions still has one subsidiary operating in Virtual Communications International, which sells software to create interactive eBooks.
However, this business contributed just 0.7% of Entellect’s $7 million in revenue in 2008-09, and posted a loss of $664,195.
Entellect’s chairman Paul Lowry was not available for comment prior to publication.
Geoff Reidy says there have already been six or seven parties express interset in MXL and is he hopeful of a quick sale.
“As far I am concerned my job is to find a buyer as quickly as possible. I see myself as an interim manager, not a long-term manager or a medium manager.”