LMS Compliance has completed its acquisition of a 75% stake in novel food certification and registration services provider, Anchor Technology Holdings, on July 11. Anchor Technology Holdings is now a 75%-owned indirect subsidiary of LMS Compliance.
The acquisition was first announced on Jan 27, when LMS Compliance said it will be acquiring the stake for US$4.51 million or $5.98 million at the time.
Under the terms of the sale and purchase agreement (SPA), the first tranche of the payment consideration has been paid.
Of the consideration, a cash payment of US$816,373 or $1.08 million has been paid. LMS Compliance has also issued 9.5 million new ordinary shares at 42 cents apiece or US$2.99 million. The price per share reflects a 15% premium to the six-month volume-weighted average price (VWAP) of the shares in LMS Compliance immediately before July 11.
The new shares represent 8.3% of LMS’s enlarged issued and paid-up share capital.
The first tranche accounts for about 84.5% of the total purchase consideration for the acquisition of Anchor Technology Holdings.
See also: Ever Glory completes acquisition of Guthrie Engineering for $31.53 mil
Shares in LMS Compliance closed flat at 39.5 cents on July 11.
