Embattled Columbia, SC, technology company Collexis Holdings has sold Lawriter LLC, the subsidiary it acquired early last year.
Collexis sold Lawriter to SSN Holdings Inc. for a little more than $2.1 million in cash, with SSN assuming all Lawriter liabilities, according to information filed with the US Securities and Exchange Commission. The total value of the transaction is approximately $7.1 million.
Collexis acquired Lawriter, which provides online legal research to a consortium of bar associations, for $9 million, according to SEC documents.
The sale of Lawriter would appear to represent a serious blow to Collexis’s future financial hopes. Lawriter earned well over half Collexis’s gross profits for the first nine months of Fiscal Year 2009 - $1.69 million compared to $1.16 million for the rest of the company.
In addition, while Collexis lost nearly $5.5 million for the nine months ended March 31, Lawriter’s loss was just $75,256.
In Fiscal Year 2008, Collexis as a whole lost more than $11.2 million, but Lawriter actually earned $73,632.
Stock in Collexis is currently trading for around 5 cents a share.