15 Jan 2009 17:51
FOR IMMEDIATE RELEASE
15 January 2009
BRAINSPARK Plc
("Brainspark" or "the Company")
Update on Investments
FORTUNE COOKIE
Following the announcement made in November 2008 Brainspark has received from Fortune Cookie £300,000, being the consideration for the remaining 14.52% shareholding held in that company by way of a purchase of own shares. This is in addition to the £300,000 which Brainspark had previously received on 31 December 2007, for the sale of an initial 14.52% shareholding.
Following this second sale, Brainspark holds no shares in the company; however, under certain circumstances, Brainspark may also have the right to share in the gain from future growth in the value of Fortune Cookie over the next seven years.
Brainspark plans to use the proceeds as additional working capital.
In the Brainspark accounts, the book value of the remaining 14.52% stake held in of Fortune Cookie was £103,000. The transaction will therefore generate a profit for of £197,000 for the financial year 2009, since the funds were received in first week of January 2009. Because of Brainspark's substantial level of carried-forward losses, the deal will not result in a tax charge.
GEOSIM
The Board of Geosim, in which Brainspark holds 42.71%, has accepted a $1,000,000 loan convertible into 50% of the enlarged issued capital from new and existing US investors. In the event of such dilution, Brainspark would hold be 20.35%. of the enlarged issued capital of Geosim. As a result of this loan, the Directors of Brainspark have decided to write-off the book value of this £1.83 million investment; however they will review the investment regularly depending upon developments of Geosim.
Prof. Francesco Gardin, a non executive director in Geosim, has resigned from the board of that company to concentrate on Brainspark developments in Asia. His position has been taken by Mr.Anthony Campanale, an IT expert who hold a Master Degree on E-commerce.
Mr Alfredo Villa, a non executive director in Geosim has also resigned from that board to pursue other business and charity interests and it is expected that a new director will be shortly appointed by Brainspark in his place.
OTHER INVESTMENTS
The Board has also reviewed the book values of its other investments in present uncertain world market it is also considered prudent to mark all the companies investments down to £424,00 against the previous book value of £824,000, net of Fortune Cookie.
For enquiries, please contact:
Dennis Bailey, Brainspark plc 01628 477785
Roland Cornish, Beaumont Cornish Limited 020 7628 3396