Transfer of Equity

22 Jun 2007 16:17

Formation Group PLC22 June 2007 Formation Group plc ("Formation" or the "Company") Transfer of Equity Formation announces that it has today signed a deed of variation (the "Deed ofVariation") to the agreement (the "Agreement") entered into by Formation andCapital Sports Solutions Limited ("Capital Sports"), a subsidiary of theCompany, on 18 March 2005 with David McKnight pursuant to which Capital Sportspurchased certain trade and assets from David McKnight. Under the Agreement,Capital Sports could, subject to the conditions set out therein being satisfied,become obliged to pay deferred consideration to David McKnight (for the periodfrom the date of execution of the Agreement to 18 March 2008) up to a maximumamount of £3.1 million. Under the terms of the Deed of Variation, Capital Sports has agreed to pay toDavid McKnight the sum of £250,000 in full and final settlement of all amountsthat have or could become payable under the Agreement in respect of the deferredconsideration. Formation and Capital Sports have agreed with David McKnight tosettle such sum with a cash payment of £50,000 and the issue and allotment of952,381 ordinary shares of 1p each in the share capital of Formation ("OrdinaryShares"). The Ordinary Shares to be issued to David McKnight will be issued out of thetreasury shares held by the Company and are expected to transfer out of treasurywith effect from 25th June 2007. Following the transaction, David McKnight will hold 1,052,381 Ordinary Sharesand the Company will hold 2,619,119 Ordinary Shares as treasury shares. Thetotal number of Ordinary Shares in issue (excluding shares held as treasuryshares) is now 194,330,312 Ordinary Shares. For further information please contact: Neil Rodford, Formation Group plc Tel: 01625 539832David Youngman, WH Ireland Limited Tel: 0161 832 2174 This information is provided by RNS The company news service from the London Stock Exchange