Calsoft reduces stake in American HealthNet

California Software Company Ltd (Calsoft) on February 06, 2007 has announced that it had reduced its group's equity interest in American HealthNet Inc. (AHN) Omaha, USA to 18.5%. The Company's wholly owned subsidiary CSWL Inc, USA has sold about 34% equity interest in AHN to another existing investor-Andorra Services Ltd (ASL), an angel investment and venture capital Company. The sale has yielded CSWL Inc. a gain of about US$ 300,000.

With this divestment, the Company's group's stake in AHN will be reduced to below 20% and the results of AHN Inc. will no longer form part of the consolidated results of the Company's group with effect from the current ongoing quarter 4 of FY 2006-07. The Company had first acquired a majority stake of 51% in AHN in February 2005 through its wholly owned US subsidiary CSWL Inc. However the investment had yet to generate positive returns for the group compared to expectations, as AHN continued to report losses for last fiscal year and for the nine months fiscal this year.

American Health Net Inc. (AHN) is a healthcare software product Company. AHN provides Integrated Enterprise Software applications to Community Healthcare Organizations and is a leading player in the US Community Healthcare Software market.

According to Mr. S (Sam) Santhosh, Managing Director & CEO, of the Company, "We still believe in the long term prospects of American HealthNet. However, as a product Company American HealthNet needs more time and continued financial support before it can turn profitable. This can be better provided by a Venture Capital Company."

The Company's group shall continue to be involved with AHN as a minority investor and also as an outsourced product development partner.

Source : Equity Bulls

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