Geometric Software Solutions Company Ltd has entered into
an agreement with the Detroit-based Virtual Supply Chain
Engineering Inc (VSCE) to make an investment of up to
$5,00,000 (Rs 2.25 crore) in its 9 per cent non-convertible
an announcement informing the Bombay Stock Exchange of
the investment, Geometric said it would make an initial
investment of $2,00,000 on signing the agreement.
company official said the agreement would be based on
the partnership model and would leverage the strengths
of the company's Bangalore-based engineering services
Geometric, she said, had been looking at entering the
field of design engineering. The partnership fitted in
well with this objective, as the projects undertaken under
the arrangement would be for the US company's automobile
US company, with its knowledge of the local market, would
serve as the front end and promote Geometric's solutions
in that country.
to the BSE announcement, the balance investment would
be made on VSCE achieving the specified targets of business
benefiting the company from itself or its affiliates.
The preference shares will have put and call options based
on time and achievement of pre-determined business targets.
will also issue a warrant to the company to purchase 25,000
shares of common stock at $7.5 each with call option at
$1 for the warrant on achieving pre-determined targets.
The warrant will expire in five years.