From rns2 May 2017 19:41
The consideration for the Acquisition is �1 million satisfied by the issue of ordinary shares in the Company at a 25% discount to the average closing bid price three days prior to and three days post the announcement of the Acquisition less the number of ordinary shares in the Company which will be issued at the non-discounted average price to settle certain creditors totalling approximately �323,600. The number of ordinary shares to be issued will reduce to the extent there are net current liabilities revealed in the target company.
In addition, the Group will pay a royalty of �11 per unit to the Vendor for each ProlongTM device sold (no minimum yearly royalty commitment) for the term of ProlongTM's patent, due to expire in 2031.�If, during any calendar year, Prolong returns a 20% EBIT of net sales then the sellers will be entitled to a �150,000 bonus payment. Dr Andy Zamar, who will act as a consultant to the Group for the first 12 months post-acquisition, will receive a fee of �4,166 per month. � �
A further announcement will be made when the consideration shares are issued.