LONDON (Alliance News) – Online and mobile marketing firm Zamano PLC said on Friday it has entered into a conditional sale and purchase agreement to sell its operating business and assets to Kilavan Holdings Ltd.
Kilavan is a company formed by the existing management of Zamano.
Under the terms of the agreement, Zamano said it is proposing to sell the entire issued share capital of its wholly-owned subsidiaries which operate its premium rate SMS business, Zamano Solutions Ltd and Zamano Ltd, to Kilavan for a total consideration of EUR1 on a debt-free, cash-free basis.
Zamano said it will make a pre-completion contribution of EUR550,000 to Zamano Solutions and Zamano Ltd, to cover potential liabilities that may arise following completion of the sale
In March, Zamano said it intended to wind down the existing business line in order to protect the cash position of the balance sheet.
Following completion of the disposal, Zamano said it will retain cash of approximately EUR5.6 million, and will commence the process required for the company to be in a position to return this to shareholders.
The company said once the sale is approved by shareholders, it will become a cash shell under AIM rules. Zamano will have six months to complete a reverse takeover before trading in its shares on AIM is suspended.
Shares in Zamano were untraded on Friday at 3.75 pence.
By Lucy Heming; firstname.lastname@example.org
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