23 October 2003 12:00am

Fringe payments provider Touchcorp found a lifeline in the form of its primary business partner Intellect Holdings, which will take effective control of Touchcorp's terminal and Eftpos business.

Under the agreement Intellect will pay Touchcorp $250,000 up front, and an unknown royalty over five years.

Touchcorp also granted Intellect an option to buy the business and assets of Touchcorp, in return for the issue of 3.39 million shares in Intellect, worth about $2 million based on Intellect's share price yesterday of 58 cents. Intellect may exercise this option between...