2ergo agrees to sale of business and intellectual property
2ergo Group has agreed to its conditional sale to Eagle Eye Solutions after it failed to successfully commercialise its podifi technology.
2ergo ltd is being sold for a total of £4.5m, which consists of £2.5m in cash and £2m-worth of shares in Eagle Eye, equal to around 6%, when it floats on AIM in mid-April this year.
The disposal includes the 2ergo's business and intellectual property, while the company itself will become an investment company, focused on the TMT sector.
Executive Chairman Ian Smith said: "The management team has worked incredibly hard to continue to prove the value of the technology the company has created. The board remains confident that the podifi technology has the ability to be a leading architect of change in the digital coupon and loyalty arena.
"However, sales traction has continued to be slow and we cannot give our shareholders the certainty they require over the company's requirements for further funding to develop the opportunity independently.
"We are optimistic and enthusiastic over the ability of Eagle Eye to combine the two company's technologies and to leverage its board's experience in the retail sector to successfully penetrate the market."
Following the disposal, the company will change its name to Broca, and will have net assets of around £4.75m, with cash of around £2.9m before disposal-related expenses.
NR