(Alliance News) - Mi-Pay Group PLC on Wednesday said it intends to sell its wholly-owned trading subsidiary, Mi-Pay Ltd, to Alphacomm BV for GBP792,000, en-route to delisting and liquidated the entire company.
However, Mi-Pay Group said it expects to secure payables owed by Mi-Pay Ltd upon completion of transaction of GBP308,000, meaning there will be a total aggregate receipt by Mi-Pay Group of GBP1.1 million.
For 2018, Mi-Pay Ltd recorded pretax loss of GBP538,486 on revenue of GBP3.3 million.
In addition, Mi-Pay Group said it will cancel its shares from trading on London's AIM market and will return capital to its shareholders via a members' voluntary liquidation.
Mi-Pay Group shares closed 0.1% lower in London on Wednesday at 2.00 pence each, giving it a market capitalisation of GBP914,230.
The mobile payment and payment fraud management firm explained that it has yet to receive a research & development tax credit of GBP300,000 from UK tax collector HM Revenue & Customs. Mi-Pay Group also was in discussions with existing and new investors regarding a potential equity fundraise in case the receipt of this tax credit will be delayed beyond the first quarter of 2020, reduced or not received at all.
Following the completion of these discussions, Mi-Pay Group said it has not been possible to conclude a fundraise with existing shareholders or other parties on "acceptable" terms.
Mi-Pay Group explained that following the completion of the disposal, it will no longer have any trading operations and will seek to determine the best method to return the net cash resources of the company resulting from the disposal to its shareholders.
Both the sale and wind-up has to be approved by the company's shareholders, it said, with not less than 75% and 50% of the votes cast in favour, respectively.
Looking ahead, Mi-Pay Group said it expects to have about GBP700,000 cash resources to make total distributions to its shareholders, equivalent to 1.5p a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.