26th Sep 2018 13:26
LONDON (Alliance News) - Website developer Grafenia PLC said Wednesday that it has amended terms of the acquisition of Image Everything Ltd to enhance cashflow and retain sellers of the business for longer period.
Under the amended agreement, the company has agreed to replace the potential GBP600,000 earn-out with a fixed additional deferred consideration of GBP550,000, payable in cash. The deferred consideration will be paid in 12 monthly instalments commencing September 30, 2019.
The company also has agreed GBP190,000 reduction in repayments in respect of the vendor loan notes of GBP1.3 million, issued in conjunction with the acquisition of Image Everything.
Following the amended to the terms of the acquisition, the total consideration for Image Everything is expected to be GBP2.8 million, satisfied in cash of GBP1.2 million on completion, secured vendor loan notes of GBP1.1 million and unsecured deferred consideration of GBP550,000.
Grafenia initially announced the acquisition of Image Everything in July 2017. Shares in Grafenia were untraded at 12.00 pence each on Wednesday.
Related Shares:
GRA.L