(Sharecast News) - Braveheart Investment Group announced on Friday that it had acquired a 29.51% stake in IQ-AI, an imaging software and healthcare diagnostics company, for £0.72m.
The AIM-traded firm said the acquisition involved the purchase of 65.4 million shares at 1.1p apiece.
Of those shares, 45.76 million were acquired from Trevor Brown, Braveheart's chief executive, for £0.5m, while an additional 19.65 million shares were purchased from Free Association Books (FAB), a company owned by Brown's children, for £0.22m.
Both transactions were deemed related party transactions under the AIM rules, due to Brown's involvement with both Braveheart and IQ-AI.
IQ-AI, which is listed on the London Stock Exchange, focuses on healthcare imaging software through its subsidiaries Imaging Biometrics and Stone Checker Software.
Braveheart said the company was making progress with a phase one clinical trial of gallium maltolate, which was a key factor in its decision to acquire the stake.
It added that its independent directors, after consulting with Allenby Capital, determined that the terms of the acquisition were fair and reasonable for shareholders with regards to Trevor Brown's relationship to both companies.
At 1101 BST, shares in Braveheart Investment Group were up 1.43% at 3.55p.
Reporting by Josh White for Sharecast.com.
Braveheart Investments (BRH)
