6 Nov 2017 07:00
Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.
6 November 2017
BOXHILL TECHNOLOGIES PLC
("Boxhill", the "Group" or the "Company")
Update on New Service & Litigation
Update on New Service
The Company announced on 28 July 2017 that it was launching a new high value transfer service facilitating transactions in excess of €10,000,000 for corporate and individual customers ("HVTS") by its wholly-owned subsidiary, Emex Technologies Limited ("Emex"), a regulated payment processing business, utilising the emexGo payment platform ("emexGo"). While HVTS has not generated any revenue to date, it is a service that the board of directors of Boxhill (the "Board") anticipate will produce significant revenues in the future and provide for a substantial increase in the monies passing through emexGo, a key focus of the Group. Emex receives ad valorem fees on all monies through emexGo (the "Processing Fees").
The development of HVTS has involved substantial investment. It has been agreed that part of this investment will be funded by Phillite D UK Limited ("PDU"), a company which between December 2014 and November 2016 undertook certain regulated payment processing activities on behalf of the Group. PDU will market HVTS to its clients as part of its offering of payment services, charging fees independently and not receiving any share of the Processing Fees. PDU's share of the investment costs (circa £1,434,000 has been claimed from PDU to date) will be met from future receipts secured by PDU on HVTS transactions where PDU will in some circumstances be acting as the principal and other circumstances as an agent. PDU's share of the investment costs are currently represented on the Boxhill balance sheet as a trade receivable (the "Agreement").
Update on Litigation
As announced on 31 October 2017, the historic legal matters surrounding the Company's relationship with its former regulated payment processor, EU Pay Group Limited ("EUPay") has been settled without any adverse cost implications. PDU has independently of the Company taken responsibility for the amounts owed by EUPay to the Group (the "Arrangement"). As a result of the settlement, PDU is now in a position to pursue the collection of these amounts without any hindrance from the now settled litigation. This will facilitate the repayment of the amounts outstanding to the Group (circa £224,000) under the Arrangement.
Related Party Transaction
PDU is controlled by Philip Jackson, who is also a director of Emex Technologies Limited and Soccerdome Limited which are wholly owned subsidiaries of Boxhill. The Agreement constitutes a related party transaction under the AIM Rules. The Board consider, having consulted with Allenby Capital Limited, the Company's nominated adviser, that the terms of the Agreement are fair and reasonable insofar as Shareholders are concerned.
Revaluation of Timegrand Software
Further to the announcement of 31 October 2017, the Company contracted an independent expert to undertake a valuation of the intangible assets included in the Timegrand Limited acquisition (announced 10 April 2017) in consultation with its auditors. The increase in the value of these intangible assets, which principally consists of software, announced on 31 October 2017, reflects the outcome of this independent valuation.
Search for New Chief Executive Officer
The Company confirms that it continues in its search for the best candidate to perform the chief executive officer role for the Group.
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For further information, contact:
Boxhill Technologies PLC 020 7493 9644
Lord Razzall, Executive Chairman
Website www.boxhillplc.com
Allenby Capital Limited (Nomad & Broker)
John Depasquale/Nick Harriss 020 3328 5656