23 Feb 2010 16:14
23 February 2010
Earthport plc ("Earthport") or (the "Company")
Franchise fee update
Further to the announcements made by the Company on 22 December 2009, 20 January 2010, 26 January 2010 and 18 February 2010 regarding the outstanding non-refundable first-year franchise fee of £3.25 million due from Zink Financial S A ("Zink"), the Company can confirm that despite continued attempts to find a commercially viable solution to the issues that arose since the original agreement, negotiations concluded today without an agreement.
As such, Earthport is terminating the franchise agreement with Zink fornon-payment of the invoiced first year franchise fee. Whilst the Company regrets that a suitable outcome could not be reached, the fundraising that we announced on 18 February 2010 is expected to be sufficient in order for the Company to achieve its business plan.
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For further details, please contact:
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| Panmure Gordon Dominic Morley / Adam Pollock
| +44 (0)20 7459 3600 |
| Financial Dynamics Jonathon Brill / Alex Beagley | +44 (0)20 7831 3113 |