New Revenue Share Agreement
17 December 2009 - 9:15PM
UK Regulatory
TIDMCMM
RNS Number : 2852E
Commoditrade Inc.
17 December 2009
17 December 2009
Commoditrade Inc.
("Commoditrade" or "the Company")
New Revenue Share Agreement
Commoditrade Inc. (AIM ticker: CMM), the commodities investment group, is
pleased to announce that it has entered into new terms under its revenue share
agreement ("Agreement")
with Sucden Financial Ltd ("Sucden") in relation to
the LME floor trading operations. The details of the agreement are:
* A fixed annual fee of GBP7.5 million under the previous agreement has been
reduced to GBP4.25 million per annum for the first year and GBP3.25 million per
annum thereafter;
* Following the deduction of all costs including the aforementioned fixed
fee, Sucden is will also receive 25% of net revenue.
* The agreement has been backdated and is effective from 1 September 2009, running
on a 12 month rolling basis.
Commenting, David Phipps, Chief Executive of Commoditrade, said:
"The new revenue share agreement will immediately enhance our potential
operating profitability.
This new agreement allows Commoditrade to reduce
its fixed costs and in return provides Sucden with a share of higher net
revenues."
Michael Overlander, Chief Executive of Sucden Financial Limited, commented:
"Sucden Financial's LME operation is a key component of our business. I am
therefore pleased
that we have concluded our discussions with Commoditrade
and look forward to further developing and strengthening our presence in the
metals market."
+---------------------------------------------+---------------------------+
| Enquiries: | www.commoditrade.net |
| | |
+---------------------------------------------+---------------------------+
| Commoditrade Inc, David Phipps, Chief | tel: +44(0)20 7245 1100 |
| Executive | |
| | |
+---------------------------------------------+---------------------------+
| Nomad - Strand Hanson | tel: +44(0)20 7409 3494 |
| James Harris/Angela Peace | |
| | |
+---------------------------------------------+---------------------------+
| Broker - Liberum Capital | tel: +44(0)20 3100 2000 |
| Chris Bowman/Ellen Francis | |
| | |
+---------------------------------------------+---------------------------+
| Media/IR enquiries for Commoditrade | tel: +44(0) 20 7245 |
| Hansard Group | 1100 |
| John Bick/Justine James | tel: +44(0) 7872 061007 |
| | |
+---------------------------------------------+---------------------------+
| Media enquiries for Sucden Financial | tel: +44(0) 20 3207 |
| Limited | 5280 |
| Tariq Ahmad | |
+---------------------------------------------+---------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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