Robert Altinger, founder and former director of Atlas Technology Group (AtlasTG), believes the listing on the American stock exchange and lack of sales were the main reasons for its failure.
Mr Altinger was reacting to the article published by i-Tech on November 20, which reported on the folding up of the Malta operation of AtlasTG last summer, just two years after the launch, and without creating the promised 600 local jobs or the ICT University.
He said: "Atlas failed for three reasons, and I freely admit my own shortcomings here: We agreed to launch as a US-listed public company. This cost us a fortune in compliance costs, as we had literally the worst of all possible worlds, requiring the audit and legal fees in both the US and Malta which exceeded $400,000 annually, money that needed to be spent without doing anything for customers or the business. We did this only after having approached many different VCs [venture capitalists] for funding, and it seemed like the only option at the time.
"We never received enough money to allow us to focus on the business, rather than scramble every month to find the cash to make payroll. We believed our sales director was actually capable of selling the services. This last is entirely my mistake, and I have paid plenty for it already, without your added criticisms."
While giving his own version of the story, the founder of AtlasTG reminded of the substantial investment made at the time. "I brought over $3 million in outside investment to Malta, took not a penny of government or other subsidies, US$700,000 of it my own money. How will you convince others to risk their money on Malta, if the price for trying and failing is that you get dragged over coals in the press?"
Mr Altinger insisted: "We never asked the government for any subsidies either for Atlas University or AtlasTG; we asked to be allowed to set up an accredited training facility at our cost, all we wanted were the permits."
In the original article i-Tech reported how AtlasTG had asked for assistance but the Maltese government could not provide what the company was asking for.
Mr Altinger revealed that he personally made a last-ditch attempt to salvage the Malta operation.
"In late August [2008], I was informed with two days' notice that the new CEO intended to shut down Malta immediately. I spent a frantic two days pulling together an offer to buy the business, assets and liabilities of the Malta group of companies, to keep them alive, which included New Zealand. We felt that if we could take it private, hire a new, competent sales director, get rid of all the expensive US overhead, we would be able to break-even and get the plan back on track.
"The proposal was made to the AtlasTG board (I, of course, abstaining) and accepted ... two weeks later, in a questionably legal move, the CEO reversed the board decision at a subsequent meeting, and fired all the Maltese staff. Mike Murphy, Atlas's co-founder and COO [chief operations officer], resigned in protest at the actions of the CEO."
In its original article, i-Tech quoted from an article by the Dominion Post which also reported on the rough times AtlasTG was going through.
"The Dominion Post article, written at the direction of the CEO, by Michael Hughes, was completely factually unsubstantiated, and they have formally apologised to us for it. Mr Hughes himself, who was told by the CEO to go back to New Zealand, fire everyone there, and return to Seattle where he would be the new COO, was instead fired himself while he was airborne, because they didn't have the courage to do the firing face to face."
Mr Altinger also revealed that he has started up a new company in Malta, hired many of the old staff, dug up some more money and is re-launching the concept, in which he still believes.
Mr Altinger was reacting to the article published by i-Tech on November 20, which reported on the folding up of the Malta operation of AtlasTG last summer, just two years after the launch, and without creating the promised 600 local jobs or the ICT University.
He said: "Atlas failed for three reasons, and I freely admit my own shortcomings here: We agreed to launch as a US-listed public company. This cost us a fortune in compliance costs, as we had literally the worst of all possible worlds, requiring the audit and legal fees in both the US and Malta which exceeded $400,000 annually, money that needed to be spent without doing anything for customers or the business. We did this only after having approached many different VCs [venture capitalists] for funding, and it seemed like the only option at the time.
"We never received enough money to allow us to focus on the business, rather than scramble every month to find the cash to make payroll. We believed our sales director was actually capable of selling the services. This last is entirely my mistake, and I have paid plenty for it already, without your added criticisms."
While giving his own version of the story, the founder of AtlasTG reminded of the substantial investment made at the time. "I brought over $3 million in outside investment to Malta, took not a penny of government or other subsidies, US$700,000 of it my own money. How will you convince others to risk their money on Malta, if the price for trying and failing is that you get dragged over coals in the press?"
Mr Altinger insisted: "We never asked the government for any subsidies either for Atlas University or AtlasTG; we asked to be allowed to set up an accredited training facility at our cost, all we wanted were the permits."
In the original article i-Tech reported how AtlasTG had asked for assistance but the Maltese government could not provide what the company was asking for.
Mr Altinger revealed that he personally made a last-ditch attempt to salvage the Malta operation.
"In late August [2008], I was informed with two days' notice that the new CEO intended to shut down Malta immediately. I spent a frantic two days pulling together an offer to buy the business, assets and liabilities of the Malta group of companies, to keep them alive, which included New Zealand. We felt that if we could take it private, hire a new, competent sales director, get rid of all the expensive US overhead, we would be able to break-even and get the plan back on track.
"The proposal was made to the AtlasTG board (I, of course, abstaining) and accepted ... two weeks later, in a questionably legal move, the CEO reversed the board decision at a subsequent meeting, and fired all the Maltese staff. Mike Murphy, Atlas's co-founder and COO [chief operations officer], resigned in protest at the actions of the CEO."
In its original article, i-Tech quoted from an article by the Dominion Post which also reported on the rough times AtlasTG was going through.
"The Dominion Post article, written at the direction of the CEO, by Michael Hughes, was completely factually unsubstantiated, and they have formally apologised to us for it. Mr Hughes himself, who was told by the CEO to go back to New Zealand, fire everyone there, and return to Seattle where he would be the new COO, was instead fired himself while he was airborne, because they didn't have the courage to do the firing face to face."
Mr Altinger also revealed that he has started up a new company in Malta, hired many of the old staff, dug up some more money and is re-launching the concept, in which he still believes.