TSTR.L Regulatory News (TSTR)

19 Jan 2005 07:00

Canisp PLC19 January 2005 Canisp plc (Canisp' or 'the Company') Disposal of assets by subsidiary ('Disposal') Canisp announces that its subsidiary, The Airtime Group Limited ('TAG'),yesterday sold to Seven Telecom Limited ('Seven') TAG's contracts and customerbase relating to pre-paid and post-paid calling cards. Seven is a subsidiary ofEnvesta Telecom plc, another AIM company. The consideration receivable by TAG is £340,000 in cash of which £120,000 waspaid yesterday, £120,000 is payable in three months and the balance of £100,000is payable in six months. The sale price may be adjusted according to an agreedformula relating to the profitability of the underlying revenue streamsgenerated by the transferred contracts and customer base in the period 1February 2005 to 31 July 2005. The adjustment, either up or down, will beeffective if the annualized gross profit from the transferred contracts andcustomer base fluctuates more than ten per cent from the projected gross profit. The Company has guaranteed TAG's obligations to Seven in the Disposal agreement.These obligations, principally, relate to the possible clawback of purchaseconsideration if there is a downwards adjustment, using the above formula, inexcess of £100,000. The Disposal is consistent with the Company's objective as set out in itsinterim results issued on 22 December 2004. At that time it was stated that TAGhad recently acquired certain fixed line customer bases, that certain furtheracquisition opportunities were being pursued, and that the Board had underactive review a possible restructuring of TAG's other activities. This Disposal completes the implementation of the first stage of Canisp'sbusiness model. The group now concentrates on the provision of fixed linetelephony services predominantly to the SME Market, including wholesale linerental. This is the core business that the Board wished to build as stated inCanisp's AIM admission document of 6 October 2003. The Board believes that therecent acquisitions and the Disposal provide a sound platform from which toexpand both organically and through further acquisitions. Contact: John Bick, Holborn tel: +44 (0) 20 7929 5599 This information is provided by RNS The company news service from the London Stock Exchange