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Infinio Group ends web portal business, stuck in financing limbo
CATALIST-LISTED Infinio Group is stuck in limbo as it ends its only revenue-generating web portal business but is unable to continue with developing its mining business until it raises more money.
Infinio previously ran an online game portal named MagicOverload with MOL Access Portal in a partnership, under which its subsidiary Onegame collected 2 per cent of of the revenue generated, while MOL Access Portal bore all operation and rollout costs. The web portal licence, acquired for a period of 10 years in 2005, had expired on June 9 this year, and has not been renewed as the group has deemed the business to be out of line with its strategic direction.
"Hence, the revenue fees in relation to the online payment business will effectively cease," said Infinio Group in an update to the Singapore Exchange on Monday.
The group had collected S$45,000 in revenue from the portal for the year ended March 31, 2015. The licence will revert to MOL Access Portal, the original owner of the payment system.
In the meantime, however, the company is unable to proceed with its drilling plans for its gold mine in Australia until it is able to raise more funding. It first carried out initial drilling in the Birthday Mine in Western Australia from June 23 to July 2 last year, but had to put this on hold due to funding constraints.
With the limited drilling, the firm has been unable to commission or complete the JORC (Joint Ore Reserves Committee) report required by the exchange under its compliance rules for mineral, oil and gas (MOG) companies.
Similarly, its annual report for the past financial year will also not include these required disclosures.
"The directors are considering an application to the exchange, for an extension of the time to meet the MOG requirements (including the required disclosure requirement in the annual report)," said Infinio in its announcement. The company has not yet applied for the extension.
The counter last traded at 0.2 Singapore cent.