Balcatta-based brake technology development company Safe Effect Technologies Ltd has completed the acquisition of 100 per cent beneficial interest in its sealed integrated braking system.
Balcatta-based brake technology development company Safe Effect Technologies Ltd has completed the acquisition of 100 per cent beneficial interest in its sealed integrated braking system. It received the extra 49 percent after its former joint venture partner, Safe Effect Technologies International Ltd, was placed into voluntary administration.
SETI is expected to be de-registered as a company by October 2006, with a Safe Effect statement indicating its de-registration will mark the conclusion of the major re-organisation of the Company's affairs, which commenced last year with the installation of a new Board and management team, a re-capitalisation leading to the resumption of trading on the ASX, and the recent placement of 12.5 million shares, raising $750,000 to bolster the company's cash reserves.
The full statement is pasted below.
Safe Effect Technologies Ltd (ASX: SAF - "Safe Effect" or "the Company") today
announced that it has completed the acquisition of 100% beneficial interest in its wet brake
technology after the 49% interest held by its former Joint Venture Partner SETI, in the
Intellectual Property of the Company, was assigned to Safe Effect on 26 June 2006.
As previously announced, Safe Effect acquired SETI on 1 March 2006, with the purpose of
acquiring 100% of the beneficial interest in the comprehensively patented Sealed Integrated
Braking System (SIBS™) - the core technology that underpins the Company's sales.
SETI's 49% interest in the SIBS™ Intellectual Property was assigned to Safe Effect in partial
satisfaction of joint venture expenses owed by SETI to the Company.
The sole purpose of SETI was as a joint venture partner to the Company. However, in light of
the fact that it has no assets and only one significant liability to the Company, the Directors
decided to place SETI into Voluntary Administration on 26 June and an Administrator was
appointed on 29 June 2006.
Subject to the Administration process, SETI is expected to be de-registered as a company in
October 2006.
The de-registration of SETI will mark the conclusion of the major re-organisation of the
Company's affairs which commenced last year with the installation of a new Board and
management team, a re-capitalisation leading to the resumption of trading on the ASX, and the
recent placement of $750,000.
Safe Effect is now well placed to continue to increase market penetration of the SIBS™
technology.
