ASX announcement 28/01/2016 Track earn-out payment As part of...

ASX announcement 28/01/2016

Track earn-out payment As part of the consideration for the Track acquisition, Crowd Mobile agreed to an earn-out payment to the Track vendors based on the financial performance for the 2015 calendar year.

The earn-out has been agreed at €4.5 million (c$7.0 million AUD), reflecting performance at the upper end by Track for the 2015 calendar year. The payment terms for the earn-out are as follows:  €2.0 million (c$3.1 million AUD) in January 2016  €2.5 million (c$3.9 million AUD) in June 2016 The January 2016 earn out payment will be funded from existing operating cash flows.

Commenting on the Track earn out payment, Crowd Mobile CEO Mr Domenic Carosa said: “The earn-out payment agreed is at the top end of the capped earn-out which is reflective of Track profit performance.

This is a very positive outcome for Crowd Mobile and provides strong profitability and cash flow momentum for 2016.”

Debt restructure As announced to the market 18 January 2016, Crowd Mobile has secured an additional €3.0 million (c$4.7 million AUD) in debt finance from its existing European debt provider which is a 3 year, 12% revolving facility, consistent with the existing terms of the initial €4.5 million (c$7.0 million AUD).

The €3.0 million has now been drawn down and will be used to repay the €3.0 million Vendor Loan which was due and payable by June 2016.

For clarity, Crowd Mobile now has total debt of €12.5 million (c$19.5 million AUD), comprising €7.5 million (c$11.7 million AUD) senior debt with our European bank at 12% p.a. over three years and €5.0 million (c$7.8 million AUD) at 15% over two years with the Track vendors.


DYOR