13th Jan 2020 11:34
(Alliance News) - Craven House Capital PLC on Monday said it has now completed its re-acquisition of medical insurance broker IIU Inc, having only sold IIU a year ago.
Shares in Craven House were up 12% at USD2.80 in London on Monday morning.
Craven House Capital North America LLC, a subsidiary, bought back IIU from LM Funding America Inc, after selling IIU a year ago for a total price of USD5.1 million.
Of the purchase price paid by LM Funding America in 2019, USD3.6 million was paid via the issuance of an LM Funding America convertible note.
Now, as consideration for the IIU re-purchase, Craven House will cancel that convertible note plus principal and accrued interest.
With a recent extension granted on the convertible note and delays in obtaining shareholder approval to convert the note to shares, Craven said it has determined that "it is in the best interests of Craven shareholders to agree to the cancellation of the convertible note and regain full ownership of IIU and its subsidiaries which continue to trade successfully and profitably".
IIU reported an annual loss of USD36,700 for 2019, with net assets on December 31 of USD1.02 million.
By Anna Farley; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Craven House Capital