Investment opportunity ?15 Nov 2011 07:19
Announces it has entered into a non-binding memorandum of understanding ("MOU") to acquire an investment in the Digital Learning Marketplace ("DLM") project from Milamber Limited. There are two phases; development and commercial exploitation.
Development - the DLM is being built as a revolutionary new learning platform intended to allow Corporations, SME businesses, and professionals to access their day-to-day and future learning requirements with the goal of helping them improve their business performance. The Directors of Intellego believe that the DLM will be the first source of truly personalised learning giving users the ability to create their own focused courses in affordable blocks, built from materials supplied by a diverse range of providers. It will enable the owners of learning content to trade and monetise their learning assets. Participants in the project include Pearson Education (19%) and Ashridge Business School (6%). The DLM is designed to have global appeal, with engaging content available in small "bite-sized" units that are easily accessible, and affordable.
The Consortium partners will (pro rata to their respective interests in the project) receive a £740,272 grant from the UK Government's Technology Strategy Board (TSB) ("Grant"), such is the importance of digital learning to the future education needs within the UK, to provide funds to help the Company finance the development of the DLM platform. The Consortium partners have agreed to match-fund the Grant giving the project a total investment of £1,498,224.
Commercial exploitation - the DLM is expected to be fully operational in 2013, in the interim there will be limited scale commercial trials and testing.
The proposed arrangements comprise an initial investment of up to £160,000 to secure a majority interest in the project during the two year development stage followed by Intellego's option to maintain this interest into the exploitation stage. If for any reason Intellego decides not to exercise the option then Milamber has undertaken to buy-back the Interest from Intellego for an amount equal to Intellego's investment save for the first payment of £40,000.
Milamber, in which Andy Hasoon is a 21% shareholder, (Intellego's CEO and Director) owns a 6.86% interest in Intellego (40,000,000 ordinary shares of 0.05p). Accordingly, the transaction is a Related Party Transaction as defined by the AIM Rules.
The independent Directors of Intellego (being all the Directors with the exception of Andy Hasoon) having consulted with the Company's Nominated Adviser, consider that the terms of the MOU are fair and reasonable insofar as the Company's shareholders are concerned.
Angus Forrest, Chairman of Intellego said: "The investment in the DLM is our first major transitory move into being a pure digital learning provider. We are excited by the opportunity, that Andy Hasoon has brought to us, wh