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Velpic granted trading halt pending results of shareholder meeting

The trading halt will remain in place until an announcement is released to the market.
ASX logo on a laptop
Approval is sought for the Velpic business sale and a name change to VPCL Limited

Velpic Ltd (ASX:VPC) has been granted a trading halt by the ASX pending the results of an extraordinary general meeting of shareholders today.

The company is seeking shareholder approval for the sale of its Velpic business and a change of name to VPCL Limited.

A halt has been granted until the earlier of the start of normal trading on Tuesday, September 25, 2018, or when an announcement is released to the market.

READ: Velpic secures better offer for the sale of its customer book and intellectual property

Velpic recently received an offer from Damstra Technology Pty Ltd to purchase its customer contracts in a deal valued at about $3.8 million.

This offer was superior to that of Go1 Pty Ltd and resulted in the agreement with Go1 being terminated as it was not willing to match the Damstra offer.

Deal valued at about $3.8 million

Damstra’s offer provides for a payment of $1 million up-front, with additional deferred consideration of about $2.8 million.

As well as the Velpic customer book, Damstra will also be acquiring all Velpic platform intellectual property, seeking to sub-let Velpic’s Subiaco premises and acquiring the Velpic business name.

At the time Velpic said it would continue to actively seek new investment opportunities, and also seek out opportunities for the sale of its other divisions and investments.

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VPCL Ltd Timeline

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