LONDON, UK: Vulcan Industries plc (AQSE: VULC) has acquired the entire share capital of Aftech Ltd and its dormant parent company from Unity Global – FZCO. Aftech is a sheet metal fabrication company specialising in laser cutting, bending and forming. Aftech complements the existing fabrication businesses within the Group by introducing additional capacity, capabilities and skills.
For the year ended 30 November 2021 Aftech reported unaudited revenue of £1,182,000 and unaudited normalised EBITDA of £266,000. At completion, the Aftech Group is expected to have unaudited net assets of £940,000 and unaudited borrowings of £155,000. The acquisition is expected to be immediately earnings enhancing.
The total consideration payable is £1.55 million to be satisfied by the issue of 123,307,433 new ordinary shares of £0.0004 each at a price of 1.257p determined by the VWAP calculated for the 15 days prior to completion.
In addition, the Company will issue 24,661,486 warrants with an exercise price of £0.03 with an expiry date of 30 June 2023 to the vendor.
In total the Consideration Shares will represent approximately 22.4% of the enlarged share capital of the Company and together with the warrants approximately 25.8% of the fully diluted share capital.
Of the consideration shares, 100,000,000 new ordinary shares have been allotted on completion and the issue of the remaining 23,307,433 consideration shares and the Vendor Warrants have been deferred, pending the receipt of the necessary authorities at the next general meeting of the Company.
Ian Tordoff, Executive Chairman, “We are delighted to be working with Unity Group who have introduced Aftech. Aftech are already showing the benefits we expect them to bring to the Vulcan Group and will head the development of our fabrication activities.”
Vulcan seeks to acquire and consolidate traditional but historically profitable engineering, manufacturing, and industrial SMEs for value and to enhance this value in part through group synergies, but primarily by unlocking growth which is not being achieved as a standalone private company.
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