SINGAPORE (June 11): Artivision Technologies has entered into an agreement to sell Dr Ofer Miller, its Executive Director and CTO, its entire stake in subsidiary Artimedia for $5 million.

Artimedia is in the business of sales and marketing by providing value added monetisation services for digital advertisement.

In explaining the disposal, Artivision says Artimedia has incurred losses since incorporation and that the subsidiary requires a substantial amount of funding which is difficult to obtain.

The net proceeds of $4.77 million from the disposal will also be used to redeem the $2 million bond issued by the company to Christine Poh Chew Hua Christine at a subscription price of 100% of the principal amount of the bond and its corresponding interest of $0.50 million. The balance of the net proceeds for general working capital requirements of the group.

Miller, also the co-founder of Artivision, spearheads the research and development efforts of the group, and has extensive industrial experience in the field of machine vision and video content analysis. As of the date of the announcement, he has a shareholding interest of 0.84% in the company.

The disposal will require the approval of Artivision shareholders in an extraordinary general meeting as the purchaser is considered an interested person under Catalist rules.

For the FY17 ended March, Artimedia recorded a net loss of $6.62 million. As at end March, the disposal group also had net liabilities of $23.1 million.

In addition, inter-company loans from the company to Artimedia amounted to $34.99, of which $29.99 million had been impaired in FY2017 and in prior years such that the net book value of inter-company loans amounted to a $5 million as at end March.

Shares of Artivision closed at 2 cents on Friday.