The deal includes a significant boost to the customer base of Coms with the addition of 4000 broadband customers alone. The total consideration is for £800,000, of which £50,000 is in cash and £750,000 in Coms ordinary shares of 0.1p each at an agreed price of 1.8p per share. At 30 June 2012 So Purple Tech Limited had gross assets of circa GBP40,000 and the ADSL24 network presently generates a monthly gross margin of approximately GBP20,000 on revenues of circa GBP75,000.
Last week we saw Coms share price jump over 100% in just one day from the news of a major contract win worth an estimated £15 million.
Dave Breith (Coms CEO) states "We are delighted that we have finalised this transaction and this will give the Company some further upsell opportunities on our now broader range of services that we offer. We have been negotiating this transaction for some time and negotiations over the past few days have been made particularly challenging with our share price increasing. We are nonetheless delighted at the increasing confidence investors have in the future of our Company".
As part of the same transaction, it has been agreed to sell GBP50,000 of Ordinary Shares shares to Gavin Wheeldon (So Purple CEO), also at a price of 1.8p per share. Both Gavin Wheeldon and So Purple Tech Limited have agreed that sales of their shares will be limited to 5 million per Month and no more than 300,000 per day.