IQ Holdings completed the reverse takeover of three market research services businesses from Aim-quoted Media Square on 30 January.
Research and consultancy services provider IQ originally planned to pay £750,000 in cash, £250,000 in shares and up to £500,000 in deferred consideration subject to net asset value adjustment. The cash was supposed to come from a share placing raising at least £750,000. IQ raised £600,000 at 0.1p a share from the placing and it has changed the payment to reflect this.
IQ has paid £600,000 in cash and £300,000 in shares to Media Square - at the placing price. The other £100,000 of initial consideration is payable in 19 months. The interest charge is 10% a year.
The expenses of the placing and deal are £467,000.
Chief executive Julian Green loaned £4,000 to IQ and John Green loaned £40,000. These loans have been converted to shares at the placing price.
The businesses acquired are all project-based and so their revenues can be lumpy. The Wire is a computer-assisted telephone interviewing and data collection business. Viewpoint Field recruits people for surveys, while Viewpoint Studios provides facilities for focus groups.
The businesses that have been acquired generated £2.21m in revenues and profits of £109,000 in the six months to August 2008. They were loss-making in the year to February 2008.
At 0.18p a share, which values IQ at £2.13m.
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