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Huge Group has signed a Memorandum of Agreement (MoA) with Centratel Group Investments and trustees of the Centracom Employees Trust, in which it is contemplated that Huge would buy 100% of the issued share capital of Centracom and the total amount owing by Centracom to the relevant shareholders for a total purchase consideration of R81,6-million.
Under terms of the MoA, 90% (ninety percent) of the purchase price would be settled by Huge through the issue of vendor shares to the relevant shareholders.
The vendor shares will be that number of Huge ordinary shares as is equivalent to the purchase consideration divided by the issue price, which will be determined by Huge at its sole discretion , but will be a price that is no more than a 10% discount to the 30 business day weighted average traded price prior to the date that the placing is authorised by the directors of Huge or a 10% discount to the three business day weighted average traded price prior to the date of the placing of the shares.
In addition, 10% of the purchase consideration shall be paid by Huge on the closing date of the transaction agreements in cash, free of deduction or set off, to the trust account of an escrow agent