News

EarlyRain selling golf kiosk subsidiary

March 24, 2002

CALGARY, Alberta - Golf kiosk maker EarlyRain Inc. (CDNX - ERN) is selling its subsidiary Tee2Tee Scoring Systems Inc. to Bedfordshire, United Kingdom-based Go Golf Holdings Ltd. Go Golf will pay $4.3 million (Canadian) for T2T. The deal will close at the end of September, according to a company news release.

In June, the company reported the need for additional capital in order to make T2T's golf products and EarlyRain's Affia smart card loyalty program profitable.

Hal Walker, chairman and chief executive officer of EarlyRain, said that as part of the deal the company will provide smart cards to Go Golf. Smart cards are its core business, Walker said.

Using funding from the sale, EarlyRain will rollout its Affia program in Canada and the U.S. Affia was launched in Edmonton, Alberta earlier this year.

Smart cards are common in Europe, and Go Golf plans to place a smart card handicapping system throughout Europe, the release stated.

T2T makes TeeMAX golf scoring and statistics kiosks, the TeeTRAX tee reservation system, TeePIX  ballot/draw program, TeePOS pro shop point-of-sale system and TeeCAP handicapping software. The company has installed software at golf courses in Western Canada and the U.S., including the Winged Foot Golf Club in New York.

In June the company reported revenues of $179,507 (CA) for the first quarter of 2001. The figure nearly equaled revenue for all of the previous year. The company's net loss for the period ending March 31, 2001 was $304,822, compared with $225,513 in the first quarter of 2000.