4th Aug 2021 15:54
Conduity Capital PLC - cash shell - Enters non-binding heads of agreement to acquire artificial intelligence-based cybersecurity business Smarttech247 for GBP33.5 million through the issue of new Conduity shares.
Should the transaction take place under the current terms, it would be considered as a reverse takeover under London's AIM rules, and be subject to contract and the completion of the necessary due diligence.
Looking ahead, considering its progress with the proposed acquisition, Conduity believes it may not be able to complete the transaction before its shares are cancelled. If it come to this, the company may complete the acquisition anyway then apply for a return to trading.
"Cybersecurity is a fast-growing market, with threats to organisations increasing on a daily basis. We are therefore very excited to be working with Smarttech247 towards a RTO which we believe would be transformational for Conduity. Smarttech247 is already an established company in the sector with a successful track record of growing revenue and profitability," says Chair Greg Collier.
RiverFort Global Opportunities PLC and Pires Investments both noted the proposal, and said that the valuation was significantly higher than at that which RiverFort and Pires investee Sure Valley Ventures invested at earlier in 2021.
Current stock price: suspended at 0.98 pence
Year-to-date change: down 42%
By Dayo Laniyan; [email protected]
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