ADVFN Amends Equity Holdings Sale Deal To Take Cash And Minority Stake (ALLISS)

9th Mar 2018 18:15

LONDON (Alliance News) - Financial market website operator ADVFN PLC said Friday it has amended a 2012 sale agreement for Equity Holdings Ltd, resulting the company taking a 30% stake in Equity Holdings and receiving GBP50,000 in cash.

The original sale agreement was signed in July 2012. Under this deal, ADVFN would have received GBP200,000 in cash and repayment of an GBP1.0 million outstanding loan. The payment of the consideration was due in July 2017.

ADVFN reported, however, that neither the cash nor the repayment had been received.

Consequently, ADVFN previously claimed its rights to acquire 99.5% fo the shares in financial research material distributor Equity Holdings. The company had decided not to exercise this right as Equity Holdings business "remained outside of the longer term strategy".

ADVFN therefore decided to seek to alter arrangement so as to "potentially give ADVFN a right to equity in EHL should it grow in market value."

On Thursday, ADVFN agreed these amended terms which will see it receive GBP50,000 in cash and a 30% stake in the firm. In return, ADVFN will waive its right to the initially agreed cash and debt repayment sums.

As of June 2017, the carrying value of Equity Holdings on ADVFN's accounts was nil.

Shares in ADVFN closed 4.6% lower at 42.00 pence on Friday.

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