19th Nov 2018 13:40
LONDON (Alliance News) - Thalassa Holdings Ltd said Monday it has received the second balance of USD600,000 of the earn out from Fairfield Geotechnologies due from the sale of WGP Group Ltd in January.
The second payment, which follows a first payment also of USD600,000, triggers the final payment of USD4.8 million, which is due September 11, 2019, which Thalassa will now recognise as receivable.
As a result, the surveying services company said its book value has increased to USD35 million from USD29 million at June 30. Thalassa's cash balance as of Monday is "little changed" from the USD18.5 million announced in October.
Thalassa said it is confident of receiving yet a further earn-out payment of an additional USD4 million, given that the equipment that WGP is currently manufacturing is targeted for use on a second contract over a new field.
In December 2017, Thalassa sold WGP business and assets to Fairfield Industries Inc for a maximum cash consideration of USD30 million. Gross initial proceeds amounted to USD20 million, with USD10 million payable once "certain customer contracts" are secured within the next five years.
Shares in Thalassa were up 2.3% Monday at 89.00 pence each.
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