Beeks pays acquisition earn-out in cash, shares

Glasgow-based Beeks Financial Cloud Group, a connectivity provider for financial markets trading, on Wednesday announced a payment of the earn-out consideration for its acquisition of Velocimetrics Limited, announced on April 15, 2020.

Beeks is a provider for international automated trading in forex, futures, equities, fixed income and cryptocurrency financial products.

Beeks Financial said on April 15 it acquired Velocimetrics, a UK-based network monitoring and trade analytics software company “for a base consideration of £1.3 million in cash and equity, plus contingent earn-out.”

On Wednesday, Beeks said: “Velocimetrics’s earn-out was based on achieving certain gross revenue targets during the financial year ending 30 June 2020.

“Further earn out consideration may become payable for the year ended 30 June 2021.

“The agreed earn-out payment being made by the group shall be satisfied by the payment of £48,890 in cash and by the issue of 430,946 ordinary shares of 0.125 pence par value each.

“These Earn Out Shares will be subject to a 12-month lock-in restriction subject to certain customary exceptions, including with the prior written consent of the company.

“Application has been made to the London Stock Exchange for the 430,946 Earn Out Shares to be admitted to trading on AIM, with admission expected to take place at 8:00am on 15 December 2020.

“Following admission of the Earn Out Shares, the company will have a total of 51,703,322 Ordinary Shares in issue.”