Join our daily newsletter At The Bell to receive exclusive market insights
- Software company Corum Group (COO) has released its quarterly activity report for the first three months of 2020
- The company’s key activities during the March quarter centred on investments
- Corum Group invested $810,000 on software capital development this quarter
- The company also invested $785,000 in PharmX, an electronic gateway which connects pharmacies, pharmaceutical wholesalers, and direct suppliers
- When it comes to the dreaded pandemic, Corum Group has reported minimal impacts from COVID-19, but has implemented cost-saving initiatives to be on the safe side
- During the quarter, the company paid $30,000 in consulting fees, and $257,000 in salaries for key management personnel
- In spite of the update, the review failed to make a dent in Corum shares at market open, still trading for five cents each
Software company Corum Group (COO) has released its quarterly activity report for the first three months of 2020.
The company’s key activities during the March quarter centred on investments. Corum Group invested $810,000 on software capital development this quarter.
In particular, the company focused on deploying a major upgrade to its Corum Clear Dispense software, which it launched in February 2019. The upgrade has dramatically improved Dispense’s performance, and introduced new features and capabilities.
The company also invested $785,000 in PharmX, an electronic gateway which connects pharmacies, pharmaceutical wholesalers, and direct suppliers. The investment allowed Corum Group to increase its stake in PharmX to a 43 per cent holding.
The opportunity to do so came after a court ruling resulted in Fred IT Group’s units in PharmX being put up for sale. Some matters between PharmX and Fred IT are still before the courts, meaning that the unpaid revenue from PharmX remains outstanding.
The first three months of 2020 were the first to be defined by the economic impacts of the COVID-19 pandemic. However, the company reported minimal impact from the virus, at least until the end of the quarter in late March.
In light of the situation, Corum Group implemented cost-saving initiatives during the quarter. The program will produce savings, which include approximately $1.5 million a year in wage costs. The company has noted that 2020’s fourth quarter will contain payments associated with those implemented changes.
During the March quarter, Corum Group paid $30,000 to a party related to one of the company’s former directors. The payment was a consulting fee, in relation to its capital raising in 2019.
Corum Group also paid a combined $257,000 in fees and salaries to Directors, key management personnel, and related entities.
In spite of the update, the review failed to make a dent in Corum shares at market open, still trading for five cents each.
