LONDON (Alliance News) - Investment company Papillon Holdings PLC said on Friday it has signed a non-binding head of terms to invest for a 50% stake in used car market-focused fintech company CarCloud Ltd.
In addition, Papillon has ended discussions with Phestor Ltd, Greenway Activated Carbon Ltd, and Phestor Denmark due to an inability to agree satisfactory terms. However, the company said it retains an equity interest and remains a "significant" creditor for the three firms.
The investment into CarCloud is subject to due diligence and regulatory approval.
"CarCloud will operate in the vibrant UK private car sales market and is an exciting opportunity; its unique technology has the potential to be a game-changer in the sector. Naturally, we are disappointed that the previous deal not come to fruition and would like to apologise to our shareholders; our focus in now on rapidly expediting this acquisition and lifting the trading suspension," said Chief Executive Charles Tatnall.
Shares in Papillon Holdings are currently suspended, last quoted at 1.32 pence.