LONDON, UK: Location Sciences has entered into an agreement to sell its insights dashboard and four contracts pertaining to its location data and insights business to Digital Envoy Inc. a leading US IP intelligence company for a cash consideration up to $0.7 million.
Digital Envoy will pay the Company $575,000 on closing and an additional $125,000 within 3 months of the closing date subject to certain post-closing warranties and covenants milestones being satisfied.
For the year to 31 December 2020, the Assets contributed revenues of £193,132, representing 18% of the Company’s total revenues and a loss before tax of £215,174 to the Company.
Principal Reasons for the Disposal
On 21 June 2021, the Company announced that following a business review the Board decided it was important to reduce the Company’s operating costs and bolster its cash reserves. Accordingly, the disposal allows the Company to significantly reduce its ongoing operating costs and also injects up to an additional US$700,000 which the Company can use for working capital purposes.
Following the disposal the Board will continue to review its strategic options and will update shareholders accordingly.