Sonata Software is making a total investment of $5 million in two lots. The first lot of $2 million will secure Sonata 8.33 million Preferred Fully Convertible shares at a price of $0.24 per share resulting in a 26 per cent stake in SpinAway. This amount shall be funded entirely from Sonata's internal resources.

Simultaneously, Sonata is awarded a warrant to pick up an additional lot of 8.33 million shares at a predetermined price of $0.36 per share. The warrant may be exercised at one time or in installments and shall be funded out of revenues generated through SpinAway in the next three years. SpinAway has entered into an exclusive arrangement with Sonata to source all its software development services/resources both onsite and offshore.

This alliance will address Sonata's strategy of acquiring new and large customers and domain expertise. This is in line with the current market trend, where customers are seeking end-to-end solutions from a single vendor. From Sonata's viewpoint this alliance brings in the advantage of an overseas acquisition without the attendant integration risks. SpinAway brings into this alliance domain knowledge in financial services & Telecom, IT strategy consulting, System Integration and customer facing processes of sales and marketing, account management, project management and application architecture. Sonata brings the ability to scale up to deliver very large projects on different technology platform and a proven & mature software development methodology.