AxisMobile has agreed to sell its business to an American company.
The consumer mobile email business has signed non-binding heads of agreement with the proposed buyer. Management considered alternatives, including raising more cash, but feels this is the best way forward. AxisMobile will then become a shell.
The company is negotiating with the holders of £6.9m of convertible debt. It wants the debt to be converted into shares. AxisMobile is also talking to these debt holders about obtaining short-term working capital.
The deal will require the approval of shareholders. The shares fell 2p to 10p.
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