Brainspark up on AISoftw@re bid
- Added:
- Dec 31, 2001
The cash bid values Brainspark at 5.3m, compared with the net assets of 12.4m, of which cash resources were 7m as at June 2001 and reverses the announcement at the start of this month that the investment fund was to wind itself up and return cash to shareholders.
As part of the deal, Don Caldwell and Sheryl Daniels-Young will remain as directors on Brainspark's board, with all other directors, including CEO Stuart Dodd resigning.
Dodd will not go unrewarded for his role in steering the company from its issue price of 125p a share to its current bid price of 4.5p a share, a 96% fall. His 16.3m shares are worth some 0.7m and his full pension rights will be safeguarded.
Brainspark was established in June 1999 as an incubator business focused on germinating and developing UK and European internet-related businesses. The company floated at 125p-a-share and raised 18.4m but its shares thereafter commenced a downward spiral and never achieved a premium to their issue price.
As part of the deal, AI Software, a software company founded in 1983 which specialises in knowledge-processing, data-mining and internet and intranet solutions intends to maintain the trading of the Brainspark shares on AIM.
The company also announced that Brainspark will have no further funding requirement for its remaining portfolio of eight investee companies.