STRUGGLING Perth-based software developer HarvestRoad Ltd is considering a possible merger or sale of its educational software technology as it seeks to raise $1.1 million to pursue a new strategic direction. HarvestRoad revealed that it had held commercial discussions for the past two months with a major customer in relation to funding requirements and a new strategic direction. However, those discussions ended on August 23, when the company’s shares were placed in a trading halt. Its shares were later suspended but resumed trading at eight cents this week. The group also revealed that its losses and widened from $659, 977 to $3.7 million in the 12 months to June 30. Revenue fell 29 per cent to $4.3 million in the same period. HarvestRoad said its performance was the result of a need to shift direction from a direct sales model to engaging large international partners. HarvestRoad said it had received commitments to raise up to $1.1 million via a convertible note issue, which was subject to finalisation later this week. The notes will mature on December 31 2008 and attract a 10 per cent per annum coupon payable monthly in arrears. Julie-anne Sprague