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Upstream Marketing and Communications Inc

  • BY: Andrew Hore |
  • POSTED: 02/10/2009 |

PR firm Next Fifteen Communications is buying a 55% stake in the operations of Aim-quoted Upstream Marketing and Communications.

Next Fifteen and its partner Asset Pioneer Ltd, which will own 45%, are paying $900,000 and assuming liabilities of $200,000 for Upstream Asia, which was founded in 2000. The businesses generated revenues of $2.09m and lost $402,000 in the six months to June 2009.

Upstream Asia has offices in Beijing, Hong Kong, Shanghai, Singapore, and Sydney, as well as affiliates in other countries.

Next Fifteen will negotiate an option agreement that will enable it to buy the other 45% of the business over a five year period at a price based on the profitability of the business. Next Fifteen will integrate the business into its Bite Communications subsidiary. This will add to Bite’s operations in Asia.

Upstream chief executive David Ketchum will continue with the business.

Next Fifteen had net cash of £1m at the end of July 2009.

Next Fifteen intends to make another announcement later in October when the transaction is complete.

Shareholders in Upstream have to agree to the disposal at an EGM on 26 october 2009. Upstream intends to reinvest the cash in the natural resources sector. Upstream will change its name to Hameldon Resources Ltd.

Shares in Upstream almost doubled to 1.25p each, which values Upstream at £1.72m. Upstream had $409,000 in the bank at the end of June 2009 but it is not clear whether any of this will go with the Upstream Asia business. Even if it doesn’t, Upstream will still be valued well in excess of its assets.

At 51p a share, up 0.5p on the day, Next Fifteen is valued at £27.6m. 

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