Business
Avante Logixx Inc. issues open letter to stakeholders
TSXV TRADING SYMBOL: XX TORONTO, Sept. 8, 2011 /CNW/ - Avante Logixx Inc. (TSXV: XX), an ...
About this update from Avante Corp
[{"type":"text","content":"\n\n\n\n\n\nTSXV TRADING SYMBOL: XX\n\n\nTORONTO, Sept. 8, 2011 /CNW/ - Avante Logixx Inc. (TSXV: XX), an\n innovative security and technology company, today issued the following\n open letter to stakeholders.\n\n\nDear Avante Stakeholders,\n\n\nMuch has transpired since I joined Avante Logixx Inc. (\"Avante\") just\n over a year ago. I would like to take this opportunity to update you on\n the progress we have made as well as comment on our future direction.\n\n\nAs many of you know, Avante has had two distinct business focuses over\n the past several years.  One is our core executive residential and\n commercial security offering (\"Avante Security\" or \"Security\") in which\n we offer industry leading response times, high touch personalized\n service, cutting edge security and protection products, secured\n transport as well as intelligent video monitoring, spanning both\n residential and commercial accounts.  The second business is one of\n technology development and innovation \"Technology\" in which Avante has\n developed unique technology such as the SmartBoxx for use in security,\n automation and energy management applications.\n\n\nFor the past several years, Avante has been consuming significant cash\n on a net basis as investment in Technology has exceeded cash flow\n generated by Security which has resulted in regular capital raises to\n fund this shortfall along with the assumption of debt.  This pattern\n was exacerbated in fiscal 2011 as trials of SmartBoxx for the purposes\n of energy management with several utilities were executed which\n resulted in further cash consumption despite generating revenue of $0.3\n million.  While the trials progressed positively, the long\n sales/decision cycle was proving to be very challenging given the\n amount of financial and human resources Avante was dedicating.  Despite\n positive feedback, no firm order commitments arose from these trials. \n Avante's burn rate (which reflects net cash used) peaked at over $1.8\n million annualized early in calendar 2011.  Further, our Security\n division, while stable from a revenue perspective, was not receiving\n the appropriate corporate resources to pursue growth.\n\n\nWe needed to make some challenging decisions as a result.  In the past\n eight months, Avante has decided to focus on...