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Craven House enters option agreements to buy into five firms

By Josh White

Date: Monday 24 Feb 2020

Craven House enters option agreements to buy into five firms

(Sharecast News) - Craven House has simultaneously entered into five non-binding option agreements to acquire shareholdings in a number of private companies, it announced on Monday, under which the shares being acquired by Craven House on execution of the options would represent a 29.9% shareholding in each company.
The AIM-traded firm said the companies included Garimon, the owner of 'Magazinos.com', which it described as the largest-by-content on-line media magazine and periodical content provision service.

They also included Onebas.com, which owns 'ONEBas.com Music', which is an optimised search engine providing a portal to music content freely circulating online, and IZYRadio, which is a UK and Sweden-based B2B and B2C venture, designed to deliver the next generation of music applications.

IZYRADIO offers "superior" music quality and music videos to radio stations, the company explained.

The last two companie were Rosedog, which owns 'Pro Vitos', an online marketer of vitamins and diet supplements from the north of Norway, and YRRO, which owns of 'North Doctor', which offers a way to make primary care appointments on-line, at times convenient to patients.

Craven House said the options gave it the sole discretion to acquire a 29.9% stake in each of the companies named for a consideration of $1.6m (?1.24m), making for a total consideration of $8m.

If it chose to exercise the options, Craven House would need to do so simultaneously, and before 20 May, when they would expire.

It explained that, if it exercised the options, the entire consideration would be paid from the proceeds of a simultaneous share subscription by the sellers of the respective shareholdings for 800,000 new ordinary shares.

The shares issued under the subscription following exercise would represent 20.8% of the enlarged share capital of Craven House, based on the shares in issue on Monday of 3,053,781.

"We are pleased to announce this agreement, which provides the company with the opportunity to acquire meaningful shareholdings in five exciting e-commerce businesses benefitting from excellent platforms, strategies and management teams based in Sweden," said non-executive director Mark Pajak.

"We look forward to reporting further news regarding these prospective acquisitions in due course."

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