AxisMobile has agreed to sell its business to Aim-quoted Synchronica.
The consumer mobile email business fits in well with Synchronica’s mobile e-mail operations. Synchronica, which used to be known as DAT Group, is issuing 85.1m shares for the business assets, although 17m will be deffered for 15 months to cover any warranties claims.
The convertible debt holders, who have been keeping AxisMobile afloat with additional finance while it negotiated the sale, will receive 68.3m of these shares. The convertible debt is currently worth $7.44m – more than double the value of the shares.
That leaves AxisMobile with 16.76m consideration shares in Synchronica plus 6.6m shares issued in return for the cancellation of the business’ debt to AxisMobile. Synchroica is also paying £156,000 to AxisMobile to help it settle outstanding liabilities.
Synchronica is raising £5.1m at 3p a share in order to finance the combined business. It will take three or four months to reduce the overheads of the acquired business. Synchronica is forecast to start generating cash by the end of 2009.
FinnCap estimates that it would cost more than £2.1m over a two year period for Synchronica to develop the technology it is acquiring. It also gains a number of existing contracts in Russia, Germany and Ukraine.
At 3.125p a share, AxisMobile is valued at £920,000. The bid/offer spread is 2.75p-3.5p.
Synchronica shares declined 0.25p to 4.25p. This will value the Synchronica shares left with AxisMobile at just under £1m.
Management has said it will sell some Synchronica shares to help it pay off its liabilities. The other shares will be distributed to AxisMobile shareholders and the company then wound up.
A meeting will be held on 10 September to gain shareholder agreement to the sale of the business and to the proposal that AxisMobile should cancel its Aim quotation.
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