3rd Jun 2014 08:09
LONDON (Alliance News) - Daily Internet PLC said Tuesday that it had reached an agreement with the former owners of Netplan Internet Solutions Ltd, Stuart Gibson and Philip Thomas, for the early payment of an earn-out, which will total GBP850,000.
The earn-out payment will comprise of GBP500,000 in cash and the issue of 19.3 million new shares at 1.88 pence.
The company acquired Netplan in November 2013 for an initial consideration of GBP2.6 million in cash, with an earn-out consideration of GBP750,000 payable subject to Netplan's earnings before interest and tax being GBP500,000 or more for the year to end-September 2014.
If Netplan's EBIT was more than GBP525,000, the earn-out consideration would be increased by GBP3 for every extra GBP1 earned. If its EBIT was less than GBP525,000 it would be decreased by GBP6 for every GBP1 it fell short.
The company has grown faster than management expected since acquisition, Daily Internet said, and it expects the Netplan to reach an EBIT that is eligible for at least GBP100,000 more than the initial GBP750,000 consideration.
In addition to the shares issued for the earn out, Daily Internet will also issue 454,545 shares at 1.88 pence to a consultant.
Gibson and Thomas will remain with Netplan until at least September 30, 2015, to help with its next phase of growth, Daily Internet said.
Shares in Daily Internet were trading up 5.1% at 1.97 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
DAIP.L