Holding in Traderserve
Brainspark PLC
17 May 2007
FOR IMMEDIATE RELEASE 17 May 2007
BRAINSPARK PLC ('Brainspark' or 'the Company')
Sale of the shares in Traderserve held by Brainspark
Brainspark today announces that it has sold its holding in Traderserve Limited
('Traderserve') a software vendor and consultancy firm focused on real-time
trading applications for brokers, traders and fund managers.
Brainspark's shareholding which represented 34.6% of the issued share capital of
Traderserve, has been sold back to existing shareholders of the company and
their associates for:
1) an immediate cash consideration of £75,000;
2) the right to share in the gain from a future sale of TraderServe Shares as
follows:
under the terms of the sale, in the event of a sale of Traderserve
Shares within24 months Brainspark will retain the right to receive a full 34.6%
of the gain made from such a sale Subsequently, during the following 60 months,
in the event of a sale of Traderserve shares the 34.6% gain received by
Brainspark will be decreased by straight line depreciation to an irreducible 5%
of the gain which continues for the long term;
3) Payment of £24,505 to Brainspark for past director's fees will be made pro
rata with accrued fees due to Traderserve Directors as soon as free cash flow
permits; and
4) Immediate payment of the Brainspark director's fees for the first six months
of 2007 amounting to £2,500.
In the Brainspark accounts, the book value of Traderserve was fully written
down a number of years ago. The transaction will therefore generate a profit of
£75,000 for the current 2007 Brainspark fiscal year.
By mutual agreement with Traderserve Brainspark Services Ltd, a Director in
Traderserve, has ceased to be a member of the Traderserve board. Traderserve's
revenues for the year ended 31st December 2006 are expected to be £457,000 with
pre-tax profit of around £7,000.
Francesco Gardin, Chairman of Brainspark, commented on the disposal: 'We are
pleased about this transaction and we will use the proceeds for other
investments, and the international growth of the Company. It is gratifying that
we have been able to negotiate a continuing participation in the future value of
Traderserve, which could be significant. We recognise the market potential of
its advanced algorithmic trading platforms and related software, and wish
Traderserve every success in the future'.
For information please contact:
Francesco Gardin, Brainspark plc on 00 39 335 296573
Roland Cornish, Beaumont Cornish Limited on 020 7628 3396.
This information is provided by RNS
The company news service from the London Stock Exchange
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