As to it being a combination of two giants in the business, Id say a more a delaying of certain death for one and a possibility to expand its customer base for the other
The Directors of daytraderHQ Ltd ('DAY') advise that DAY has signed aLicence Agreement with Maincity Investments Pty Ltd and HometraderLtd ('Purchaser') whereby the Purchaser will operate and manage theshare-trading training business ("DAY Education Business") of DAYthrough an exclusive licence arrangement.Further:* the licence has been granted for an initial term of 10 years duringwhich time the Purchaser will pay DAY a licence fee. The licence maybe extended by up to 2 periods of 5 years each at the election of thePurchaser.* DAY has agreed to assign all of its rights, title and interest inthe DAY Education Business and the assets.* the Purchaser has agreed to assume certain liabilities under leaseagreements pending the assignment or sub-lease of the propertyleases.This amalgamation brings together the two giants in the industry andcreates the opportunity to provide the combined membership with aneven more impressive variety of benefits, choice and services.The Managing Director Mr Greg Pennefather said "We are pleased thatthis arrangement ensures our customers will continue to receiveprofessional services from Hometrader but is mixed withdisappointment at having to book a loss on the write-down of assetsof approximately $700k, 59% of which relates to intangibles."He added "The DAY Education Business has not been performing andrevenues from it have been in decline for some time, therefore it isappropriate for the company to divest itself of this division andconcentrate on the Perth iX business, where most of the company'sfinancial resources have been allocated."QUERIESGreg Pennefather, MANAGING DIRECTOR 9216 6600Simon Storm, CHIEF FINANCIAL OFFICER & COMPANY SECRETARY 9226 0767ends - AAP
