Last checked at 2 Aug 2016 12:08
2 August 2016
Braveheart Investment Group plc
('Braveheart', the 'Company' or the 'Group')
Conditional disposal of interest in Investee Company
Further to the announcement on 29 July 2016, the board of Braveheart is pleased to announce that it has agreed terms to conditionally sell its 1.25 per cent. interest and the 3.75 per cent. interest held by Strathclyde Investment Fund ("SIF"), in which the Group has an 89.3 per cent. interest, in mLED Limited ("mLED") to a large US based technology company. The sale is conditional, inter alia, on the termination of certain employee and other contracts and on subsequent completion of the transaction (expected in early September, but by no later than early November). The cost of terminating these contracts will be offset against the sale proceeds.
The total net consideration to be paid to the Group is to be satisfied entirely in cash. It is estimated that the Group will receive a total net consideration of £381,000.
mLED provides ultra-high brightness microLED array technology for the fast growing markets of Near-To-Eye, Head-Up-Display, Wearables, Printing and Lithography. The company is a spin-out from the University of Strathclyde. At 31 March 2016, the net book value of the interest held by the Group was £96,000. Accordingly, the estimated total net consideration receivable will result in a profit to the Group of £285,000.
The proceeds of the sale of the mLED shares, as and when received, will increase the Group's cash reserves and will be used for investing in suitable opportunities in accordance with the Group's investment strategy and for working capital generally.
Given the outstanding conditions of the sale, there can be no certainty that the transaction will be completed. A further announcement will be made in due course.
Further information:
Braveheart Investment Group plc
Trevor Brown, CEO Tel: +44 1738 587555
Allenby Capital Limited (Nominated Adviser and Broker to Braveheart)
David Worlidge / James Thomas Tel: +44 20 3328 5656