Catuity Raises $5.3 Million To Close Australian Acquisition ? Hopes To Regain NASDAQ Compliance

DETROIT – Software developer Catuity said it raised $5.29 million in capital and closed its acquisition of Australian firm Loyalty Magic Pty Ltd., which Catuity officials said should put the company back into compliance with NASDAQ’s listing standards.

Catuity announced plans in March to buy Loyalty Magic as part of its turnaround plan toward profitability. The company issued shares to raise up to $5.3 million for the acquisition and do use for working capital.

In a statement, Catuity said it believes the moves put it back into compliance with NASDAQ’s minimum requirements for shareholder equity, but it still is awaiting official confirmation.

In other news, Catuity also appointed Geoff Wild, currently the non-executive chairman of WPP Group (Australia) to its board of directors. The appointment follows the recent appointment of Don Campion, the former CFO of Verifone and a veteran financial executive, to chair the board’s Audit Committee.Wild’s appointment fills all four independent seats on the Board of Directors.

Wild will chair the Board’s Nomination and Governance Committee and will join the Audit Committee.