16th Jan 2006 10:47
Commoditrade Inc.16 January 2006 16 January 2006 Commoditrade Inc. ("Commoditrade" or "the Company") Acquisition Update On 31 October 2005, Commoditrade announced that negotiations were at an advancedstage to acquire a UK-based company engaged in the brokerage of commodities andderivatives. The company to be acquired is regulated by the Financial Services Authority in the UK (the "FSA") and as such an application for approvalfor change of controller has been submitted to the FSA. The Company confirms that negotiations to acquire this brokerage company("Brokerage") are progressing and an appropriate announcement will be made indue course. In addition, the Company is pleased to announce that it has been granted anoption by Tambelan Limited ("Tambelan") to acquire Tambelan's economic interestin its contract with the Brokerage ("Contract"), in respect of metals tradingon the London Metal Exchange. The option is exercisable at the sole discretionof Commoditrade. In the event of exercise, the consideration to be paid byCommoditrade to acquire Tambelan's interest in the Contract is to be satisfiedas to a combination of cash and shares. The consideration will be determinedfollowing finalisation of Tambelan's trading results for the financial yearending 31 December 2005. As the acquisition of Tambelan's interest in theContract would constitute a reverse takeover under the AIM Rules, it would besubject to, inter alia, the approval of shareholders. Tambelan is owned byGraham Porter, Chairman of Corvus Capital Inc., which itself is Commoditrade'slargest shareholder. As such, the exercise of the option will also be arelated party transaction under the AIM Rules. Further details relating to theoption will be announced in due course. The proposed acquisition of the Brokerage and the exercise of the option are notinter-conditional. In the event that Commoditrade's proposed acquisition of theBrokerage does not complete, the Company is preparing an application to the FSAfor a new company to be regulated as a metals trader. The Company expects to provide a further update by 28 February 2006. TheCompany's shares were suspended on 12 July 2005. The Company's shares will, asa result of today's announcement, remain suspended. Enquiries John Bick 0870 389 6999 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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