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MyATM rises from the ashes

Jun 21, 2013

Cash dispensing machine company MyATM Holdings was re-admitted to the Australian stock exchange today after going into voluntary administration in 2011.

Two of its original shareholders are listed in the Top 20 shareholders of the new entity.

Shulamite Pty Ltd and Twenty First Pty Ltd, companies that were associated with MyATM Holding’s founders Donald Brownlie Fleming and Timothy Scala, hold 4.2 million shares each in the new company.

InDaily asked the newly-listed company’s office holders if Messrs Fleming or Scala had any other involvement in the activities of the company.

“I confirm that Messrs Fleming and Scala do not have any other involvement in the activities of the Company,” company secretary Nicki Farley said.

MyATM Holdings sold and deployed cash dispensing machines and went into voluntary administration on 6 December 2011, less than a year after it floated on the stock exchange.

Creditors approved a deal proposed in March last year by administrators Korda Mentha for the company shell to be sold for $650,000 in a Deed of Arrangement to Perth-based Trident Capital Pty Ltd.

Under the deal Trident also acquired 20 ATM sites for $50,000.

MyATM’s business model involved selling ATMs to investors and arranging for the machines’ placement at sites, mainly in retail outlets.

Revenue from the fees was meant to be divided between data suppliers, machine maintenance, owners and the site.   However, payments to investors in the machines soon dried up and shares in the company tumbled from 20 cents to less than one cent at one stage.

MyATM Holdings Pty Ltd’s three related entities, Aussie ATMs Pty Ltd, MyATM Pty Ltd and MyEFTPOS Pty Ltd, were wound up.

Administrators Korda Mentha told creditors it would consider taking action to recover moneys paid in “voidable transactions” by MyATM Pty Ltd’s sole director Tim Scala.

In an announcement to the stock exchange yesterday My ATM Holdings Limited said it “plans to recommence the historic business of the Company by renting automatic teller machines (ATM) from ATM owners and installing and maintaining these ATMs in small to medium enterprises in both urban and remote locations across Australia.

“It will commence operations once re-instated with 20 pre-existing sites, which represent an asset retained by the Company through the DOCA.

“It plans to increase its operations in the ensuing 12 months.

“Investors need to consider carefully that the business proposed to be recommenced is substantially the same as the historic business of the Company that failed.

“The Company has retained 20 ATM sites which were historically revenue producing but which have not been monitored while the Company has been in Administration.

“These sites are in a variety of locations throughout Victoria, Western Australia, Queensland and South Australia.

“The Company will undertake negotiations with both the ATM owners to lease the ATMs and landlords of the ATM sites to provide site access to install and maintain the ATMs under commercial terms.

“There is no guarantee that contractual terms with ATM owners, landlords of ATM sites or outsourced providers of maintenance for the ATMs will be achieved.”

MyATM was major sponsor of Port Adelaide Football Club until the deal was ended on in late 2011 with Port Adelaide still owed around $350,000 from the sponsorship.

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