Invigor Group set to put more money in the bank
Published 16-MAY-2016 12:09 P.M.
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2 minute read
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Invigor Group Limited (ASX:IVO) has signed a binding term sheet with IVS Holdings Limited (IVS) to vary its previous commercial arrangements and put more cash in the bank.
Invigor currently has a holding in My Verified ID Holdings Pty Ltd (MVID), a subsidiary of the IVS Group.
IVS and its subsidiaries have developed and patented technology that allows rapid, low cost, identity verification for online financial transactions.
Invigor previously announced that it had agreed to sell its interest in the IVS Group for $2m in cash and shares contingent on the completion of the capital raising by IVS under the prospectus.
Under the newly agreed terms, Invigor will now receive $500,000 when IVS completes a pre-IPO fundraising, which is expected to be completed within 90 days.
A further $500,000 will be distributed to IVO following completion of IVS’s IPO. The IPO is expected to be completed by 30 October 2016.
Invigor will be issued shared in IVS to the value of $1.2 million.
All up Invigor can expect $2.3 million to land in its bank account consisting of a $1.1 million cash component, 1.2 million shares and the $100,000 in cash that has already been paid.
The number of shares issued by IVS to IVO will be dependent on the IPO issue price. The shares will be held in voluntary escrow for three months from listing date and then released in blocks during the following nine months subject to ASX listing ruling requirements.
“We are pleased that we have agreed with IVS the news transactions terms to enable the holding in MVID to be fully realised in a way that brings value to all involved,” said Invigor CEO Gary Cohen.
“With the shareholding in IVS, we will be able to participate in upside from the eventual listing of IVS whilst also ensuring that Invigor has additional liquidity from receiving the $1.2 million in cash.”
The extra money will enable IVO to maintain its current momentum in strengthening its local and international foothold in the brand analytics solutions space.
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