CloudCoCo PLC (AIM:CLCO) shares jumped over 254% on Wednesday on a proposal to sell its IT services subsidiary for a gross cash consideration of £9.2 million.
This would allow CloudCoCo to clear debts and leave approximately £950,000 for working capital, the company said in a statement.
A share purchase agreement has been signed with Aspire Technology Solutions for the entire issued capital of the subsidiary, CloudCoCo Ltd, the statement added.
“[This] marks a positive step for the group, enabling us to eliminate long-term debt and focus on expanding our value-added reseller operation, particularly in e-commerce, where we see significant opportunity,” non-executive chair Simon Duckworth said.
“While 2024 has presented trading challenges, we are confident the strategic shift announced today secures the group's long-term future.”
He added CloudCoCo was also in advanced talks to sell its Connect data centre services wing business.
Shares jumped 254.8% to 0.51p.