Business
Disposal
Disposal.
About this update from Truetide Plc
[{"type":"text","content":"\n \nRNS Number : 5122V Braveheart Investment Group plc 13 December 2013 \n \n\n13 December 2013\n \nBraveheart Investment Group plc\n('Braveheart', the 'Company' or the 'Group')\n \nDisposal of Envestors\n \nBraveheart Investment Group plc (the 'Group' or the 'Company'), the AIM-listed investment management group providing debt and equity capital to SMEs and servicing the investment requirements of business angels, high net worth individuals, family offices, and public sector organisations announces that it has sold Envestors Ltd ('Envestors'), one of its subsidiaries, to a management buy-out team. \n \nThe sale follows the decision by the Braveheart Board to exit the business for the following reasons: \n \n· Whilst Envestors has shown steady growth since its acquisition in 2010, it has not performed in line with expectations and has not contributed positively to the Group's financial performance. Furthermore, recent trading has been poor and the business has made significant losses due to high fixed costs; and\n \n· Envestors provides corporate finance advisory services; as such there is little forward visibility on revenue, which in any case tends to be volatile. This model does not fit with the Group's strategy of building a business based on long-term contracted revenue. \n \nNotwithstanding the sale of Envestors, the two businesses will continue to collaborate on certain initiatives for mutual benefit. \n \nThe consideration for the sale is the cancellation of the final Braveheart share issue due to the three management buy-out participants, as agreed at the time of the Envestors acquisition and detailed within the Group's 2013 Annual Report. Consequently, 882,971 new Braveheart shares will now not be issued. A fourth member of the management team, who exited the business in March 2013, will still be issued with 324,924 new Braveheart shares and application for these shares to be admitted to AIM will be made shortly.\n \nTwo members of the management buy-out team are directors of Envestors and the disposal is therefore a related party under the AIM Rules. The Directors of Braveheart, having consulted with the Company's nominated adviser, consider the terms of the disposal to be fai...