(Alliance News) - Anti-microbial hygiene firm Byotrol PLC said Thursday it has renegotiated the contingent payments relating to its acquisition of Medimark Scientific Ltd in August 2018.
Byotrol agreed to acquire the UK infection control company for up to GBP4.5 million, with earn-out payments dependent on the reaching of earnings before interest, taxes, depreciation and amortisation target for the financial years to March 31, 2019 and 2020.
However, Medimark had traded below expectations in the 2019 financial year, and is unlikely to reach the Ebitda target in the current year.
As a result, all parties have agreed to Byotrol issuing 9.4 million shares and being paid GBP290,000 in cash.
This will reduce the aggregate payment made for the acquisition to GBP2.8 million, and looking ahead, Byotrol will report a one-off gain of around GBP400,000 for its 2020 financial year.
"We are pleased to now be closing the earnout, on terms that we think are fair to both Byotrol and the Medimark vendors. We are now able to integrate the two businesses and to release the potential synergies that we identified at the time of the acquisition," said Chair John Langlands.
Also on Thursday, Byotrol announced the purchase of shares by Chair Langlands and Chief Financial Officer Nic Hellyer.
Langlands bought 1.0 million shares at a price of 1.81 pence per share, totalling GBP18,100. He now holds 9.0 million shares, reflecting a 2.0% stake in Byotrol.
Hellyer purchased 500,000 shares for 1.798p each, totalling GBP9,890, which makes up his entire holding.
Byotrol now has 440.2 million shares issued overall.
Shares in Byotrol closed 2.7% lower at 1.78 pence on Thursday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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