Hyro settles ATO debt

Company moves from 50 per cent loss to $4 million capital raising to eradicate debt

Hyro Limited (ASX:HYO) has settled the last of its historical debts with the Australian Taxation Office (ATO).

The Australian digital company, which last year posted a 50 per cent loss in total revenue for the half year to 30 June, today announced a capital raising of some $4 million that will provide for all debt to be cleared by next month.

Chairman of the company, Robert Clarke, said Hyro’s history of debt was in part caused by the global financial crisis.

“Just as we were preparing to launch our comprehensive digital offering, the GFC hit,” Clarke said in a statement.

“Our major financier Lehman Brothers was placed into administration, which kyboshed any opportunity to raise funds let alone a line of credit. The climate changed overnight from growth to survival.”

The company, which Clarke describes as being an “evolutionary hybrid” of media and technology operations, has launched a new product which has already been deployed across the government sector.

“In the last 12 months the company has launched Idaptive [an Identity and Access Management (IDAM) suite], a significant product for which the IP has been in development over the last four years,” he said.

The settling of the debt comes after Hyro launched a three-for-one rights issue earlier this month, with the company saying it intended on using the proceeds to settle the debts from the ATO.

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Tags Hyro LimiteddebtATOAustralian Taxation Office (ATO)

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