Boxhill Technologies PLC Company Update (5924V)
November 06 2017 - 1:00AM
UK Regulatory
TIDMBOX
RNS Number : 5924V
Boxhill Technologies PLC
06 November 2017
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
6 November 2017
BOXHILL TECHNOLOGIES PLC
("Boxhill", the "Group" or the "Company")
Update on New Service & Litigation
Update on New Service
The Company announced on 28 July 2017 that it was launching a
new high value transfer service facilitating transactions in excess
of EUR10,000,000 for corporate and individual customers ("HVTS") by
its wholly-owned subsidiary, Emex Technologies Limited ("Emex"), a
regulated payment processing business, utilising the emexGo payment
platform ("emexGo"). While HVTS has not generated any revenue to
date, it is a service that the board of directors of Boxhill (the
"Board") anticipate will produce significant revenues in the future
and provide for a substantial increase in the monies passing
through emexGo, a key focus of the Group. Emex receives ad valorem
fees on all monies through emexGo (the "Processing Fees").
The development of HVTS has involved substantial investment. It
has been agreed that part of this investment will be funded by
Phillite D UK Limited ("PDU"), a company which between December
2014 and November 2016 undertook certain regulated payment
processing activities on behalf of the Group. PDU will market HVTS
to its clients as part of its offering of payment services,
charging fees independently and not receiving any share of the
Processing Fees. PDU's share of the investment costs (circa
GBP1,434,000 has been claimed from PDU to date) will be met from
future receipts secured by PDU on HVTS transactions where PDU will
in some circumstances be acting as the principal and other
circumstances as an agent. PDU's share of the investment costs are
currently represented on the Boxhill balance sheet as a trade
receivable (the "Agreement").
Update on Litigation
As announced on 31 October 2017, the historic legal matters
surrounding the Company's relationship with its former regulated
payment processor, EU Pay Group Limited ("EUPay") has been settled
without any adverse cost implications. PDU has independently of the
Company taken responsibility for the amounts owed by EUPay to the
Group (the "Arrangement"). As a result of the settlement, PDU is
now in a position to pursue the collection of these amounts without
any hindrance from the now settled litigation. This will facilitate
the repayment of the amounts outstanding to the Group (circa
GBP224,000) under the Arrangement.
Related Party Transaction
PDU is controlled by Philip Jackson, who is also a director of
Emex Technologies Limited and Soccerdome Limited which are wholly
owned subsidiaries of Boxhill. The Agreement constitutes a related
party transaction under the AIM Rules. The Board consider, having
consulted with Allenby Capital Limited, the Company's nominated
adviser, that the terms of the Agreement are fair and reasonable
insofar as Shareholders are concerned.
Revaluation of Timegrand Software
Further to the announcement of 31 October 2017, the Company
contracted an independent expert to undertake a valuation of the
intangible assets included in the Timegrand Limited acquisition
(announced 10 April 2017) in consultation with its auditors. The
increase in the value of these intangible assets, which principally
consists of software, announced on 31 October 2017, reflects the
outcome of this independent valuation.
Search for New Chief Executive Officer
The Company confirms that it continues in its search for the
best candidate to perform the chief executive officer role for the
Group.
.
For further information, contact:
Boxhill Technologies PLC 020 7493 9644
Lord Razzall, Executive Chairman
Website www.boxhillplc.com
Allenby Capital Limited (Nomad & Broker)
John Depasquale/Nick Harriss 020 3328 5656
This information is provided by RNS
The company news service from the London Stock Exchange
END
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