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AFH issues more shares to pay for acquisition

AFH issues more shares to pay for acquisition

AFH has paid the final tranche of deferred consideration for the acquisition of Davisons Financial Management Limited, which was announced in August 2015.

The deferred consideration has been settled through the issue of 239,162 new ordinary shares of 10p each.

The value of the shares is £585,947, based on the average mid-market price of £2.45 for the five days ended 4 September 2017.

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AFH has applied to admit the new shares for trading on Aim and it is expected that admission will become effective on 12 September 2017.

Following the issue of the new shares, the issued share capital of AFH consists of 30,583,443 ordinary shares of 10p, each with one voting right.

AFH bought Devon-based Davisons Financial Management for a maximum consideration of £2.85m.

Under the agreement, £1.07m has been paid for Davisons Financial Management upfront, funded from AFH’s cash resources, together with the issue of 71,915 consideration shares at a price of £1.46p.

Of the remaining £1.68m, no more than £945,000 was paid in cash, with the balance settled through the issue of shares.

The shares will subject to a 36-month lock-in from the date of issue.