22 Oct 2021 08:05
22 October 2021
This announcement contains inside information for the purposes of Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310. With the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
Location Sciences Group PLC
("Location Sciences" or the "Company" or the "Group")
Sale of Certain Assets to Digital Envoy, Inc.
Location Sciences (AIM: LSAI) is pleased to announce that it has entered into an agreement to sell its insights dashboard and four contracts (collectively the "Assets") pertaining to its location data and insights business to Digital Envoy, Inc. a leading US IP intelligence company ("Digital Envoy") for a cash consideration up to US$700,000 (the "Disposal").
Digital Envoy will pay the Company US$575,000 on closing and an additional US$125,000 within 3 months of the closing date subject to certain post-closing warranties and covenants milestones being satisfied.
For the year to 31 December 2020, the Assets contributed revenues of £193,132, representing 18% of the Company's total revenues and a loss before tax of £215,174 to the Company.
Principal Reasons for the Disposal
On 21 June 2021, the Company announced that following a business review the Board decided it was important to reduce the Company's operating costs and bolster its cash reserves. Accordingly, the Disposal allows the Company to significantly reduce its ongoing operating costs and also injects up to an additional US$700,000 which the Company can use for working capital purposes.
Following the Disposal the Board will continue to review its strategic options and will update shareholders accordingly.
For further information please contact:
Location Sciences Group PLC via Allenby
Mark Slade, Chief Executive Officer
David Rae, CFO and Commercial Director
Allenby Capital Limited (Nominated Adviser) Tel: +44 (0)20 3328 5656
David Hart
Vivek Bhardwaj
Turner Pope Investments (TPI) Ltd (Joint Broker) Tel: +44 (0)20 3657 0050
James Pope
Andy Thacker
Peterhouse Capital (Broker) Tel: +44 (0) 20 7220 9791
Charles Goodfellow
Eran Zucker