TIDMK3C
K3 Capital Group PLC
30 November 2020
K3 CAPITAL GROUP PLC
("K3", the "Company" and including its subsidiaries the
"Group")
Joint Venture Agreement
K3 Capital Group plc, a multi-disciplinary professional services
firm providing advisory services to SMEs, is pleased to announce
that it has entered into a joint venture arrangement to further
expand its business services offering to SMEs, with further detail
set out below.
K3 embarked on an acquisition strategy in 2020 which resulted in
the successful acquisitions of randd and Quantuma. As part of that
process, the Company employed Stephen Crossley, an experienced
specialist recruiter and head-hunter to 'market map' both the niche
tax and the corporate recovery markets so that they could identify
and make contact with the most appropriate targets. The Company was
so impressed with the service received and how effectively it
unearthed the acquisition targets that K3 has now invested in a
joint venture with Stephen Crossley and set up a new company Market
Mapping Limited ("Market Mapping") to provide this service for UK,
overseas and private equity companies looking to make off-market
acquisitions in the UK SME market. Under the terms of the agreement
K3 will own 40% of Market Mapping's issued share capital with an
option to acquire the remaining 60% on 31 May 2024. Consideration
for 40% of Market Mapping's issued share capital will be determined
by certain financial performance hurdles as at 31 May 2024 and the
balance of 20% payable by way of an earn out, also based on
achieving certain financial performance over the three years ending
31 May 2025, 2026 and 2027. The 60% consideration, should the
option be exercised, shall be payable through a mixture of cash and
shares in the Company. Market Mapping commenced trading this month
and has already secured its first assignment with a public
company.
Furthermore, the Company has been notified that Mike Keyse,
founder of randd, purchased a further 149,535 ordinary shares of 1
penny each in the Company, taking his total beneficial interest to
921,850 shares (representing 1.3% of the Company's current issued
share capital), demonstrating his confidence in the strategy of the
enlarged Group.
John Rigby, K3's CEO, commented,
"We received a very impressive service from Steve Crossley at
the time of the randd and Quantuma acquisitions and were cognisant
of the benefit this service would have to our wider client base and
other PLC's, Corporates, PE Houses and Family Offices. We are
delighted that Steve has agreed to work with us in developing the
Market Mapping business through this joint venture arrangement.
This joint venture reinforces our strategy to build a wider group
of growing and complementary professional services businesses to UK
SME's and we believe there will be significant opportunities to
cross sell this service into our various business divisions."
For further information, please contact:
K3 Capital Group plc Tel: c/o finnCap 020 7220
0500
John Rigby, Chief Executive Officer www.k3capitalgroupplc.com
Andrew Melbourne, Chief Financial Officer
finnCap Ltd (Nominated Adviser and Broker) Tel: 020 7220 0500
Jonny Franklin-Adams, Emily Watts, Charlie Beeson (Corporate
Finance)
Tim Redfern, Richard Chambers (Corporate
Broking)
About K3 Capital
K3 Capital Group plc is a multi-disciplinary professional
services firm providing advisory services to SMEs, with operations
throughout the UK and overseas.
Services provided by KBS Corporate, KBS Corporate Finance,
Knightsbridge and KBS Capital Markets:
-- Mergers and Acquisitions (M&A) - Company sales, brokerage
and corporate finance services to SME's looking to achieve full or
partial exit, advising on sales to private, trade, plc, private
equity or overseas acquirors. Strategic advisory and valuations,
financial due diligence and debt advisory.
Services provided by RandD UK Limited:
-- Research & Development tax credit advisory: advising
clients on Research and Development Tax Credit (RDTC) claims.
Services provided by Quantuma Advisory Limited:
-- Restructuring advisory: formal insolvency appointments,
informal restructuring advisory, personal insolvency and pension
restructuring and insolvency advice.
-- Financial advisory: comprehensive analysis of business
performance through business toolkit, independent reviews,
stakeholder management and turnaround and interim support.
-- Creditor Services: creditor representation and liquidations.
-- Forensic accounting and expert witness: forensic
investigations, intelligence and forensic accounting.
-- Pensions advisory: corporate and trustee advisory, pension
scheme restructuring advisory, covenant advisory and expert
witness.
The Group's medium-term strategy is to build a wider group of
growing and complementary professional services businesses to
provide SME's with high quality advice across specialist
disciplines.
K3 Capital Group trades on the London Stock Exchange (AIM:
K3C.L), having listed on 11 April 2017. Please visit
www.k3capitalgroupplc.com for more information.
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