3rd Aug 2015 09:04
LONDON (Alliance News) - AIM-listed investment company Iafyds PLC Monday said it has agreed a reverse takeover of software company 365 Agile Ltd for GBP8.5 million, which it will fund through the issue of shares, and a share placing to raise GBP2.2 million to to fund its re-admission, name change and working capital.
Iafyds used to be known as Vphase, and was a developer of energy savings products. However, it got into financial difficulty and went into administration in September 2013. In April it had warned that the listing of its shares on AIM would be cancelled on Thursday if did not find a suitable investment.
Iafyds intends to change its name to 365 Agile Group PLC and be readmitted to AIM after completing the reverse takeover. It will pay the GBP8.5 million consideration through the issue of shares at 75 pence each.
It plans to raise GBP2.2 million through the placing of shares at the same price, and it said this placing shares will represent around 18.4% of its enlarged share capital when it is readmitted. It has also proposed a share consolidation of every 10,000 existing ordinary share into on new ordinary share.
MXC Capital, of whom 365 Agile is an investee company, noted the proposed reverse takeover. Upon re-admission MXC would have a 23.2% interest in 365 Agile, it said. Its Finance Director Jill Collighan will joint 365 Agile's board and act as the company's chief financial officer, it said.
"Joining AIM is a big step in developing the potential of our technology; the enhanced profile and additional capital will enable us to accelerate our product development and drive further growth in the company. This will assist us in increasing our presence in our current markets and will drive growth in future emerging solutions," said Chief Executive Officer of 365 Agile Jonathan Holyhead in a statement.
Alongside the acquisition and placing it has also been proposed that MXC Capital and Holyhead convert debt facilities into new shares at the issue price to the amount of GBP850,000 and GBP100,000 respectively.
Shares in MXC were up 0.9% at 2.83 pence Monday, whilst Iafyds remains suspended.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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