WGP Earn Out update

RNS Number : 8226E

Thalassa Holdings Limited

23 October 2018

 

Thalassa Holdings Ltd

(Reuters: THAL.L, Bloomberg: THAL:LN)

("Thalassa", "THAL" or the "Company")

WGP Earn Out update

This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.

The board of Thalassa (the "Board") is pleased to announce that, following the Company's announcements of 11 July 2018 and 17 September 2018, in respect of the earn out due from the sale of the business and assets of WGP Group Ltd ("WGP") on 1 January 2018, a total of US$0.6 million was received on 17 September 2018 (in connection with the equipment manufacturing contract) and a further $0.6 million (in connection with the service contract) should be received in the coming days. The 80% residual balance of the earn out of US$4.8 million, is due to be paid by 11 September 2019.

The Board remains confident that, barring any unforeseen event and subject to the execution of a second data acquisition contract by WGP, the Company should, within the next few years, receive a further $4m due under the earn out agreement.

Duncan Soukup stated, "Our investment in WGP had its fair share of ups and downs in line with the oil industry which has experienced two price collapses and a raft of bankruptcies over the past 10 years. The sale of WGP's business and assets, in line with the Board's objectives, has now resulted in above average returns for shareholders of 22.1%, 25.94% and potentially 28.1% CAGR, based upon the $20m initial sale price, $26m including first earn out and $30m based upon second earn out, if received."

"On behalf of the Board and shareholders I would like to thank the staff of THAL and WGP as well as our various advisors who contributed to these returns."

"The Company's cash position, as at 22 October 2017, was $18.492m ($1.01 per share or £0.78p per share). Including the $0.6m due in the coming days and the $4.8m due next September, the Company's cash level, excluding investments and ongoing administrative expenses, will amount to $23.892m or $1.31 or £1.01."

Investor Enquiries:

Thalassa Holdings Ltd

      Duncan Soukup, Chairman                                                 [phone]

WH Ireland Limited (Nominated Adviser and Broker)

      Chris Fielding, Managing Director, Corporate Finance       [phone]

www.thalassaholdingsltd.com   

Note to Editors:

Thalassa Holdings Ltd, incorporated and registered in the BVI and quoted on AIM, is a holding company with various interests across a number of industries.

 

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