Mercia Technologies PLC Deferred Consideration and Board Change (8338I)
March 26 2018 - 1:00AM
UK Regulatory
TIDMMERC
RNS Number : 8338I
Mercia Technologies PLC
26 March 2018
RNS 26 March 2018
Mercia Technologies PLC
("Mercia" or the "Group")
Deferred Consideration and Board Change
Mercia Technologies PLC (AIM: MERC), the national investment
group focused on the funding and scaling of innovative technology
businesses with high growth potential from the UK regions, is
pleased to announce the full payment of the deferred consideration
for the acquisition of Enterprise Ventures Group Limited
("Enterprise Ventures"), details of which were originally announced
on 10 March 2016. The trigger for the payment of the GBP2.0million
deferred consideration target (adjusted to GBP1.98million to take
into account one Enterprise Ventures Seller ceasing to be an
employee of the Group) was Enterprise Ventures successfully being
awarded at least GBP80.0million in net new fund mandates during the
two-year period following Mercia's acquisition. In fact, Enterprise
Ventures has significantly outperformed this target, having been
awarded GBP178.0million in net new fund mandates during this
period, which is a very positive outcome for Mercia.
Mercia has deducted, and will settle, the Sellers' income tax
and employees' national insurance liabilities arising from the
receipt of the deferred consideration. The net deferred
consideration is being settled by the issue of 2,707,475 Ordinary
shares (the "Deferred Consideration Shares"). The value of each
Deferred Consideration Share is 39.9 pence and is based on the
average closing mid-market price for the five days ended 23 March
2018.
Application has been made for the Deferred Consideration Shares
to be admitted to trading on the AIM market of the London Stock
Exchange ("Admission") and it is expected that Admission will
become effective at 8.00 a.m. on 29 March 2018. The Sellers include
two Persons Discharging Managerial Responsibilities ("PDMRs").
Following Admission, Julian Viggars and John Simpson (both
PDMRs) will hold the following Ordinary shares and options:
PDMR Deferred Consideration Total number Number of
Shares of Ordinary options over
shares Ordinary shares
---------------- ----------------------- ------------- -----------------
Julian Viggars 231,004 424,325* 400,000
---------------- ----------------------- ------------- -----------------
John Simpson 481,317 754,997 250,000
---------------- ----------------------- ------------- -----------------
*Including 75,000 Ordinary shares held by Mrs Emma Viggars
Following Admission, the Company will have 303,309,707 Ordinary
shares in issue. This figure may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in, Mercia under the FCA's Disclosure Guidance and
Transparency Rules.
Board Change
Mercia Technologies also announces that following the wholly
successful integration of Enterprise Ventures, Jonathan Diggines,
its former Chief Executive, who joined the Board of Mercia as an
Executive Director upon completion of the acquisition, has notified
Mercia that he believes that this is the right time for him to
relinquish his Mercia directorships. He will continue to work with
the team at Mercia Fund Managers, the Group's growing and
profitable fund management business, by participating in the
investment decision-making process as a member of Mercia's numerous
funds' Investment Committees. In particular, he will chair the new
GBP45.1million Enterprise Ventures Growth II fund, which closed in
December 2017.
Dr Mark Payton, CEO of Mercia Technologies PLC, said:
"Today's announcement of the significant overachievement of the
Enterprise Ventures' deferred consideration target is another
milestone in Mercia's evolution and demonstrates the Group's
ability to identify, evaluate, price, acquire and successfully
integrate value-adding acquisitions.
"I would like to take this opportunity to thank Jonathan
Diggines for his significant personal contribution towards
achieving the successful integration of Enterprise Ventures into
the Group, where it has continued to flourish and grow. Jonathan's
continuing involvement within Mercia can only be a catalyst for
further investment success in the future."
The information contained within this announcement is deemed to
constitute inside information as stipulated under the Market Abuse
Regulation (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
For further information, please contact
Mercia Technologies PLC +44 (0)330 223 1430
Mark Payton, Chief Executive
Officer
Martin Glanfield, Chief Financial
Officer
www.merciatech.co.uk
Cenkos Securities plc +44 (0)20 7397 8900
Stephen Keys, Camilla Hume
(NOMAD and Joint Broker)
Canaccord Genuity Limited +44 (0)20 7523 8000
Simon Bridges, Emma Gabriel
(Joint Broker)
Buchanan +44 (0)20 7466 5000
Bobby Morse, Chris Lane,
Stephanie Watson
www.buchanan.uk.com
About Mercia Technologies PLC
Mercia is a national investment group focused on the funding and
scaling of innovative technology businesses with high growth
potential from the UK regions. Mercia benefits from 19 university
partnerships and offices across the Midlands, the North of England
and Scotland providing it with access to high quality, regional
deal flow. Mercia Technologies PLC is quoted on AIM with the epic
"MERC".
Mercia's 'Complete Capital Solution' initially nurtures
businesses via its third party funds (now with circa
GBP350.0million under management following recent mandate wins) and
then over time Mercia can provide further funding to its 'Emerging
Stars' by deploying direct investment follow-on capital from its
own balance sheet. Since its IPO in December 2014, Mercia has
invested over GBP46.0million directly across its portfolio of
'Emerging Stars'.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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