Note 8Contingent consideration is payable to vendors subject to...

Note 8

Contingent consideration is payable to vendors subject to HWB achieving an agreed EBIT performance target range structured as per below:

(a) Maximum amount of $4.0 million will be payable upon HWB achieving EBIT of $6.3 million or more for the 2022 financial year;
(b) No consideration will be payable if HWB achieved an EBIT result below $5.4 million for the 2022 financial year;
(c) If HWB achieved an EBIT result above $5.4 million but below $6.3 million, the contingent consideration will becalculated by multiplying EBIT portion above $5.4 million by a factor of 4.5.

Equity consideration is payable in form of 6,666,667 fully paid ordinary shares calculated by dividing $3,000,000 by volume weighted average price of 5 days prior to acquisition which was $0.45. Shares issued as a part of equity consideration will be subject to voluntary escrow until the conclusion of 2022 financial year.

The Group and vendors have agreed to offset completion working capital adjustment amount against contingent consideration payable to the Vendors.