Cirrus only owe $500,000 to be issued in shares at the end of FY/18
The other $3,000,000 is dependent on the EBIT multiple result being greater than
$2,000,000 at the end of FY/18
See Transaction Summary below for details :-
Transaction Summary
Cirrus has entered into an agreement to buy 100% of the share capital of Correct Communications Pty Ltd for 3.92 times FY18 EBIT ("EBIT multiple") with a minimum purchase price of $2 million and a maximum of $5 million.
The purchase price comprises two tranches. The first tranche being $1.5 million in cash on completion and $500,000 in CNW shares to be issued at the end of FY18 at an issue price based on 5 day VWAP at the time of issue and escrowed for 2 years.
The second tranche will depend on the EBIT multiple result being greater than $2million and will be calculated after the release of the audited FY18 full year financial results.
Where a payment is due, the first $1 million will be paid in cash with the balance in cash or CNW shares at CNW’s discretion up to a maximum tranche two payment of $3 million.
Should shares be issued as part of tranche two these shares would be priced based on 5 day VWAP at the time of issue and escrowed for 2 years.
Completion is expected to occur within 30 days subject to satisfying certain conditions precedent.
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