Update re. the sale of Works Manchester Limited
01/06/2023 07:00
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RNS Number : 2561B Grafenia plc 01 June 2023
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1 June 2023
Grafenia plc
("Grafenia" or "the Company" or the "Group")
Update regarding the sale of Works Manchester Limited
Grafenia plc (AIM: GRA) announces the following update regarding the sale of
Works Manchester Limited which was undertaken to enable the Group to focus on
its stated aim of becoming a serial acquirer of vertical market software
businesses.
On the 19 May 2022, the Company announced it had agreed to sell its
wholly-owned subsidiary, Works Manchester Limited ("Works Manchester"),
formerly Image Everything Limited, and certain business and assets of its
wholly-owned subsidiary Grafenia Operations Limited ("Grafenia Operations")
(together, the "Disposal") to Rymack Sign Solutions Limited, a privately owned
company trading as PFI Group ("PFI").
The Disposal to PFI completed on 31 May 2022 and, pursuant to the sale and
purchase agreement entered into between PFI and Grafenia, Grafenia was to
receive consideration of £3,165,000 payable in the following installments:
- £30,000 on completion
- £35,000 one month following completion;
- £35,000 two months following completion;
- Four installments of £766,250 on the first, second, third and fourth
anniversaries of completion (the "Deferred Consideration").
The first installment of Deferred Consideration was subject to adjustment for
any shortfall or excess in actual net assets on completion versus estimated
net assets prior to completion. Following the preparation and agreement of
completion accounts, the first installment of Deferred Consideration was
adjusted to £514,223 (the "Adjusted Installment").
PFI has yet to make payment of the Adjusted Installment which was due on 31
May 2023 and the Company is in discussions with PFI to resolve the matter. A
further update will be provided in due course.
As reported in its Pre-close statement and Trading Update on 3 May 2023, the
Company has made significant progress in pursuing its new strategy and is
currently considering raising additional funding to enable this to continue.
For further information:
Grafenia plc
Gavin
Cockerill
07968 510 662
Allenby Capital Limited (Nominated Adviser and
Broker)
David Hart / Piers Shimwell (Corporate Finance)
0203 328 5656
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