3rd Feb 2020 12:21
(Alliance News) - GRC International Group PLC said Friday it has entered a deed of variation for the agreement to acquire data consulting firm DQM Group Holdings Ltd, mainly changing the terms on which deferred payment is made to DQM shareholders.
In addition, the IT products and services firm has proposed to raise GBP3.8 million through a placing of 28.8 million shares at a price of 13 pence each.
Proceeds from the placing will go towards satisfying the proposed revised deferred consideration and provide additional working capital.
Conditional to the completion of the placing, the deferred consideration for DQM will have an aggregate value of GBP3.6 million and under the deed of variation terms, the cash component will be satisfied by the payment of GBP1.6 million in cash and the issue of shares valued at GBP426,186.
GRC acquired DQM in February 2019 for an initial GBP5.9 million and had expected to pay a deferred consideration in the range of GBP2.5 million to GBP3.5 million. However, in July the group postponed its annual results as DQM outperformed expectations, leading to the deferred consideration being higher than expected.
Shares in GRC International - which is based in Cambridgeshire - were up 8.6% at 23.90 pence on Monday in London.
By Dayo Laniyan; [email protected]
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