Craven House Capital PLC Completion of sale of subsidiary (4186N)
January 17 2019 - 8:54AM
UK Regulatory
TIDMCRV
RNS Number : 4186N
Craven House Capital PLC
17 January 2019
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Craven House Capital plc
("Craven House" or the "Company")
Completion of sale of subsidiary to LM Funding America Inc.
The Company announces that it has completed the sale of its
wholly owned subsidiary, IIU Inc., ("IIU") (a medical insurance
broker) to LM Funding America Inc. ("LMFA") for a total purchase
price of approximately $5.1 million.
The purchase price has been revised from that previously
announced as certain other assets owned by IIU are no longer being
acquired by LMFA and instead are being transferred to IIU's parent
company, Craven House Capital North America LLC (a wholly owned
subsidiary of the Company). In the Company accounts for the year
ended 30 May 2018, IIU carried a value of approximately GBP2.4m
and, in 2017, generated approximately $500,000 in adjusted pre-tax
income.
Under the terms of the transaction, LMFA will acquire 100% of
the outstanding stock of IIU. The consideration will comprise
cancellation by LMFA of all principal and accrued interest of a
Promissory Note issued to LMFA for principal indebtedness of
approximately $1.5 million and the issuance of Convertible
Promissory Note ("Convertible Note") for the balance of the
purchase price of approximately $3.6 million.
The Convertible Note shall bear simple interest at 3% per annum.
The Convertible Note shall be due and payable 360 days following
the completion of the transaction. The note is payable at Craven's
option, subject to LMFA shareholder approval, in common stock of
LMFA at a conversion price of $2.41 per share at any time on or
after the first meeting of shareholders of LMFA to occur in 2019.
In the event that the entire principal is converted to shares, this
will represent approximately 1.5 million new common shares in
LMFA.
As previously announced, this transaction therefore provides
Craven with the option to significantly increase its shareholding
in LMFA, following the previously announced acquisition of 640,000
shares in LMFA in November.
Ends
For further information please contact:
Craven House Capital Plc Tel: 0203 286 8130
Mark Pajak
www.Cravenhousecapital.com
SI Capital Tel: 01483 413500
Broker
Nick Emerson
www.sicapital.co.uk
SPARK Advisory Partners Limited Tel: 0203 368 3550
Nominated Adviser
Matt Davis/Mark Brady
www.Sparkadvisorypartners.com
About Craven House Capital:
The Company's Investing Policy is to invest in or acquire a
portfolio of companies, partnerships, joint ventures, businesses or
other assets globally in any geographic jurisdiction. The company
will invest in both developed and developing markets providing long
term patient capital and is often involved in special situations,
restructuring, expansion and turn around investments in crisis and
transitioning economies.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DISCKODPNBKDDDD
(END) Dow Jones Newswires
January 17, 2019 08:54 ET (13:54 GMT)
Craven House Capital (LSE:CRV)
Historical Stock Chart
From Mar 2024 to Apr 2024
Craven House Capital (LSE:CRV)
Historical Stock Chart
From Apr 2023 to Apr 2024