Cantono has decided to sell its data centre business.
This sparked a 4.125p jump in the share price to 5.375p each, which values the data centre operator at £1.61m. The share price has recovered since Cantono failed to get shareholder agreement to ditch its Aim quotation. The data centre business could be worth a lot more than the market value of the company.
Cantono is still in dispute with Xploite over deferred consideration for the managed IT services business sold by Cantono. Xpolite should have paid £1.1m on 15 March 2009 but it has not been paid.
A new loan facility of up to £1.25m has been secured. This facility is in the form of secured loan notes which will be redeemable if the data centre business is sold. There is no interest charge but there is a redemption premium of 200% on top of the principal if it is repaid within 12 months or a 300% premium if it takes longer. The first £340,000 has been drawn down. This was the only way to fund the development of the data centre operations.
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