Ottawa-based In-Touch Survey Systems Ltd., which develops managed mobile software technologies and services, is planning to spin-out some of its intellectual property into a separate company.
© Darren Brown
The new company, currently codenamed ‚ÄúProject September‚ÄĚ will be headed by Michael Gaffney, the executive chair and former CEO of In-Touch (TSXV: INX).
The spin-out deal will see In-Touch sell $150,000 worth of assets, including intellectual property and a business plan, to Project September. In-Touch will also invest $100,000 in the new company to cover its working capital needs for 2014.
Based on that deal, In-Touch says seven other investors are expected to put $355,800 into the new company.
In-Touch will retain a 41 per cent ownership stake in Project September, while Mr. Gaffney will own 38 per cent of the new company.
‚ÄúThe creation of Project September is consistent with the previously announced strategy of seeking opportunities to commercialize assets on a stand-alone basis,‚ÄĚ Cameron Watt, In-Touch‚Äôs president and CEO said in a release. ‚ÄúWe are optimistic that this sale will provide the focus required to turn this intellectual property into a valuable asset for In-Touch."
The company has provided few details on the IP it plans to spin-out through Project September, saying only that it relates to a ‚Äúprivacy marketing‚ÄĚ solution.
In late March, when In-Touch released its year-end financials, Mr. Watt said the company was planning to launch a spin-out company which was developing a software-as-a-service product.