Conveyancing firm Indeed Online has reported that a contract has been signed to dispose of property law firm Runnett & Co to its co-founder Matthew Lewis for one pound.
The company added that intellectual property relating to the online conveyancing business would be included in the sale.
As part of the terms of the disposal Indeed Online said that it had agreed to pay £325,000 upon completion to fund working capital or restructuring costs.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The transaction represented the disposal of substantially all the business of Indeed Online and would be subject to shareholder approval at a general meeting, the company said.
Following the completion of the Runnett disposal, Indeed Online said that it would hold net cash of £900,000 and no debt as well as tax losses amounting to approximately £2.77m.
It said that assets to be disposed of contributed the majority of the company's last reported loss before tax. The directors said that they would hold discussions with shareholders as to whether the company would invest the remaining cash or be wound up with cash distributed to shareholders.
Indeed Online's share price was unchanged at 12p at 10:48 on Friday.
MF
-
David Ellison: America's new media mogulDavid Ellison is building a mighty new force in old and new media. Critics worry that he will prove to be a Trumpian patsy. Is that fair?
-
Investors have overlooked some of China’s best growth stocksOpinion Dale Nicholls, portfolio manager, Fidelity China Special Situations, highlights three Chinese businesses where he’d put his money
