(Alliance News) - Falanx Group Ltd on Friday last week said it has sold its cloud technology platform Furnace for GBP1.1 million.
The stock was trading 3.3% lower in London at 1.40 pence a share on Tuesday.
Furnace was sold to Furnace Technologies Ltd, a company led by Falanx Chief Strategy Officer & Founder John Blamire, who has resigned from the AIM-listed company with immediate effect as a result.
Following the sale, Falanx noted it will continue to benefit from Furnace technology through licensing and support agreements. Furnace is server-less stream processing platform that allows developers within businesses to build high-volume data-driven applications, such as for security monitoring and finance. The product aims to help enterprises to improve performance, increase the visibility of risks, and reduce costs, according to Falanx.
The AIM-listed company said it believes that there is a strong potential market opportunity for Furnace; however, it is "pre-revenue", loss making, and non-core to Falanx's cyber services market. For the year to the end of September, Falanx had capitalised research & development costs of GBP1.2 million relating to Furnace, together with goodwill on the balance sheet of GBP400,000.
The sale of Furnace will reduce Falanx's cash expenditure requirements, it said.
"We believe that through the management buy-out, John and his team will be able to better focus and exploit its potential in addition to freeing Falanx to progress its core Cyber services business," said Falanx Chief Executive Mike Read.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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