21st Sep 2005 07:01
Polaron PLC21 September 2005 21 September 2005 Polaron plc Disposal of Software business Polaron plc, (LSE: POL) the broad-based technology group, announces that it hasentered into a binding agreement to sell its software business FastTrak SoftwarePublishing Ltd ("FastTrak"), to FastTrak's Managing Director Jon Silvera andPolaron's former Finance Director, Jonathan Clough. The transaction is for atotal consideration of approximately £170,000 payable in cash, of which £100,000is due upon completion and the balance payable over 5 years, with interest beingpayable at LIBOR + 2.5% on the outstanding annual balance. The disposal follows the termination of FastTrak's relationship with its majorlicensing partner, Magix AG. FastTrak has instructed lawyers to commenceproceedings against Magix for breach of contract. FastTrak has agreed to pay toPolaron 90% of any monetary amount received up to £275,000 regarding litigationor settlement in respect of the termination of the relationship with Magix AGand 50% of any amount higher than £275,000. Polaron has agreed to assumeresponsibility for legal costs incurred. In the financial year ended 30 June 2005, FastTrak reported turnover of £1.39mand profit before tax of £0.04m and had net assets of £0.17m. The Companyintends to apply the net proceeds of the sale to the reduction of debt. FastTrak will remain based at Polaron's Watford premises and has agreed to pay acombination of rent and management charge of £100,000 per annum for a minimumperiod of 3 years. Commenting on the disposal, Joe Stelzer, Chief Executive of Polaron said: "This disposal makes a step towards the achievement of Polaron's strategic goalto consolidate the business and concentrate on two core businesses:Nanotechnology and Controls." Enquiries: Polaron plc Tel: 01923 495 513Joe StelzerFraser Searle Financial Dynamics Tel: 0207 831 3113Juliet Clarke/Hannah Sloane This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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