28th Nov 2007 13:33
Brainspark PLC28 November 2007 For immediate release 28 November 2007 Brainspark plc ("Brainspark" or "the Company") Brainspark nets profit from Fortune Cookie share sale Update on China IPO Group and Placing Brainspark has agreed to sell its 29.4% holding in Fortune Cookie (UK) Limited("Fortune Cookie") - a company engeaged in the development, marketing and saleof information technology services. Brainspark's 29.4% stake in Fortune Cookie is being sold to the agency under theprovisions enabling a company to buy back its shares out of capital. Brainsparkis due to receive £300,000 cash on or before 31st December, 2007 and £300,000 atthe end of 2008. Fortune Cookie has been successful over the past few years and is purchasing theshares from its own cash balances. The agency continues to be debt-free andprofitable. Brainspark plans to use the proceeds as additional working capital. Undercertain circumstances, Brainspark may also have the right to share in the gainfrom future growth in the value of Fortune Cookie over the next seven years. In the Brainspark accounts, the book value of Fortune Cookie is £193,000. Thetransaction will therefore generate a profit of £203,000 for the current 2007Brainspark fiscal year. However, because of Brainspark's substantial level ofcarried-forward losses, the deal will not result in a tax charge. 'We are pleased about this transaction and we will use the proceeds for other investments, and for the international growth of the Company,' says FrancescoGardin, Chairman of Brainspark. 'It is gratifying that we have been able tonegotiate a continuing participation in the future value of Fortune Cookie,which could be significant. The company is now in its 10th year of business andcontinues to grow. We recognise the market potential of Fortune Cookie'sservices and wish them every success in the future.' Justin Cooke, Managing Director of Fortune Cookie, commented: 'We have enjoyedthe support of Brainspark and are delighted to have delivered investment returnback to them. To have made this purchase from our cash reserves makes a positivestatement about the capabilities of the team here at Fortune Cookie." Brainspark is currently engaged in a fund raising exercise for its Jersey basedcompany China IPO ("the Placing"). China IPO holds three agreements with ScienceParks in Xi'an International Business Park, Tianijn International Business Parkand Tianjin Incubator Center which entitle it to take investments in any of the800 companies as they develop and in some cases prepare for an IPO themselves.Early indications concerning the fund raising are encouraging. In the event of asuccessful fund raising Brainspark interest in China IPO will fall toapproximately 25%. Three directors intend to subscribe for new ordinary shares under the Placing,on the same terms as all other investors in the Placing, at 100 p per share, andto the total values as follows. The resultant percentage of the shares held byeach Director will not be known until the placing is completed but will notexceed 0.68% of the share share of China IPO for each Director: +-----------------+-----------------+-----------------+-----------------+|Name |Number of Placing|Value of Placing | || |Shares |Shares | |+-----------------+-----------------+-----------------+-----------------+|Francesco Gardin |25,000 |£25,000 | |+-----------------+-----------------+-----------------+-----------------+|Dennis Bailey |25,000 |£25,000 | |+-----------------+-----------------+-----------------+-----------------+|Edward Burman |25,000 |£10,000 | |+-----------------+-----------------+-----------------+-----------------+ For information please contact: Francesco Gardin, Brainspark plc on 00 39 335 296573Roland Cornish, Beaumont Cornish Limited on 020 7628 3396 ___ This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
CLP.L