Financial services company Spring FG Limited (ASX: SFL) today announced it has completed the acquisition of all the issued capital of financial services dealer group Wealth Today Pty Ltd.
Under the terms of the acquisition agreements the Company will pay a total consideration of $1.67M to acquire all the issued capital of Wealth Today from its existing shareholders.
The consideration is being satisfied by cash of $200,000; the issuance of $956,000 of shares in the Company at an issue price of $0.15 per share (a 25% premium to the last closing price, and reflecting the 90‐day VWAP) for a total of 6.37M shares; and the issuance of a 2‐year interest‐free convertible note with a conversion price of $0.25 per share. Shares issued to the majority shareholders (representing 4.72M of the shares issued) are escrowed for two years.
Subject to EBITDA targets being exceed over the first 12 months from settlement the major shareholders of Wealth Today may be entitled to up to a further $533,000 of consideration which (if payable) will be added to the convertible note.
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