BOS Global makes good progress with slimming-down strategy

21st Dec 2016 09:01

(ShareCast News) - Software company BOS Global Holdings updated the market on the sale of certain non-core assets on Wednesday, confirming it has disposed of all shares it held in Azarga Metals Corp. for a cash consideration of approximately CAD 26k.The AIM-traded firm said the net proceeds of that sale are expected be received before 31 December.It also advised it has reached a confidential agreement with a US-based start-up to sell its Hostisme hospitality software prototype and associated intellectual property, which is considered to be non-core to the company's activities.The terms agreed include $10,000 upfront upon execution of the assignment deed - expected on or before 31 December - as well as a minimum of $120,000 in contracted software development services to be provided by the BOS Global Software Development Centre In India for FY2017 only.A minimum royalty fee of $60,000 would also be payable on the 10-year anniversary, or 2.5% royalty on sales over a 10-year period commencing from FY2018, whichever is the greater amount.The company said it expects to complete the sale on or before 31 December as well.At BOS Global's 75% owned Copper Range subsidiary, it renewed previously lapsed tenements and combined those with its existing portfolio of tenements in the Olympic Domain precinct located in South Australia.It said it intends to commence a formal sale process for Copper Range and its minerals assets."The company's focus continues to be its BOS360 Work Patterns system of software products and related services," the board said in a statement."The company's objective is to achieve operating profitability during FY2017, remain debt free and retain a surplus cash reserve to enable acquisition opportunities to be pursued."