Proxama PLC Sale of Digital Payments Division (1870V)
November 01 2017 - 2:00AM
UK Regulatory
TIDMPROX
RNS Number : 1870V
Proxama PLC
01 November 2017
1(st) November 2017
Proxama PLC
("Proxama" or the "Company")
Sale of Digital Payments Division
Proposed change of name to Location Sciences PLC
Proxama PLC, (AIM: PROX), the leading mobile location and data
intelligence expert, is pleased to announce the sale of its Digital
Payments Division (the "Division") to LHH2 APS, a private Danish
company, for an initial cash consideration of GBP1m (less working
capital of approximately GBP0.3m and transaction costs) plus
potential deferred consideration of up to GBP1m over the next 18
months, subject to certain performance conditions. The Division
generated a loss of GBP0.8m in the year to 31 December 2016 and had
net liabilities of GBP2.4m as at 30 June 2017.
As announced on 17 May 2017, Proxama had previously undertaken a
strategic review of the Division and concluded that retaining the
Division as a scaled-back operation best maximised value for
shareholders. However, post the conclusion of the strategic review,
LHH2 approached the Company as a potential cash acquirer of the
Division which the Board considered was in the best interests of
its shareholders for the Company to accept.
The cash funds received from the sale of the Division will be
used to further strengthen the balance sheet, following the
successful placing and open offer in July 2017 which generated
gross proceeds of GBP3.1m and resulted in all debt being cleared,
and provide further funding for the development of the Location
Sciences business, including investment into its revenue generating
products.
Proposed change of name
Following the disposal of the Division, the Company's sole focus
will be on the Location Sciences division. Therefore it is proposed
that the Company's name changes to Location Sciences PLC at the
next Annual General Meeting, which is currently expected to take
place no later than June 2018.
Kelvin Harrison, Chairman, said,
"The completion of this transaction concludes the transition to
become a location data business. We are now debt free, have working
capital resources, a new executive team, a proposed new name,
access to mobile location data via our 4m audience and the know-how
to turn that data in to revenue generating products. As a team, we
are entirely focused on scaling this business."
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation.
Enquiries:
Proxama PLC Via Redleaf Communications
Mark Slade, Chief Executive Officer
Peel Hunt LLP 020 7418 8900
(Nominated Adviser and Broker)
Edward Knight/Nick Prowting
Redleaf Communications
Charlie Geller 020 7382 4769
Fiona Norman
This information is provided by RNS
The company news service from the London Stock Exchange
END
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