Nicosia, Cyprus. GlobalWealth Group PLC announced to the Cyprus Stock Exchange that it has signed an agreement for the potential acquisition of a stake in Vergina Kypros TV Ltd as it seeks to expand its investment portfolio.
Agreement and financing terms
The company said the agreement was concluded with Vergina Kypros TV Ltd and its existing shareholders. Under the terms, GlobalWealth Group will immediately provide short-term financing to Vergina Kypros TV in the form of a convertible loan to cover working capital needs.
Call option and acquisition structure
The agreement grants GlobalWealth Group an exclusive call option to acquire a stake in the issued share capital of Vergina Kypros TV Ltd. The option may be exercised within an agreed time period defined between the parties.
If the option is exercised, the total acquisition price will be paid through a combination of cash and the issuance of new GlobalWealth Group shares.
Potential increase in participation
GlobalWealth Group also retains the right to convert the loan amount into shares of Vergina Kypros TV Ltd, which could increase its participation in the company’s share capital.
Conditions and regulatory approval
Completion of the proposed transaction is subject to several conditions, including legal and financial due diligence intended to clarify the company’s current financial position and verify any existing debts or liabilities.
The transaction also requires the necessary approvals from the Cyprus Radio and Television Authority.
What key factors will you watch for as GlobalWealth Group proceeds with due diligence and seeks regulatory approval?
