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JAM | Mar 13, 2022

Micro-Financing Solutions enters formal brokerage agreement

/ Our Today

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Takeover bid circular for SSL Venture Capital Limited resubmitted

The planned takeover of SSL Venture Capital Limited by Micro-Financing Solutions Limited is back on the drawing board. 

This comes on the heels of Micro-Financing Solutions Limited, which is a sub-agent of Lasco Moneygram and Western Union, entering into a formal brokerage agreement.

The latest development will allow for the resubmission of its takeover bid circular for SSL Venture Capital at the appropriate time.  

The offer circular, published on March 4, 2022, to purchase 100 per cent of the shares in SSL Venture Capital Limited was withdrawn on the same day. The same-day withdrawal was done to facilitate Micro-Financing Solutions entering into a formal brokerage agreement, which has now been completed. 

VOTE THIS WEEK ON TAKEOVER BID

Micro-Financing Solutions Limited, which offers short term funding solutions to both individuals and micro small and medium size companies made a take-over bid offer to purchase 100 per cent of SSL Venture Capital on January 17, 2022 for some $38 million. This represents one-tenth of the market value of shares in SSL Venture Capital, which is said to worth $512 million on the stock market.

The board of listed Jamaican venture capital company, SSL Venture Capital Limited is convening a meeting this week to vote on the takeover bid received from Micro-Financing Solutions Limited. Micro-Financing Solutions Limited is offering to purchase SSL Venture Capital issued share capital at the price of $0.0948 per ordinary share.

Micro-Financing Solutions Ltd

Stocks and Securities Limited is the primary shareholder in SSL Venture Capital, owning 79 per cent of the issued shares with 15 per cent being owned by mostly former executive employees and directors of the venture capital outlet and the balance of six per cent equity being owned by the general public.

SSL Venture Capital was formed in 2018 by Mark Croskery, the then CEO of SSL Jamaica.

SSL Venture Capital was listed on the Jamaica Stock Exchange in August 2018, following a reverse takeover of failed music publishing company, C2W.

As at June 30, 2021, SSL Venture Capital had accumulated deficit of J$123.4 million in comparison to J$222.5 million in 2020. In addition, at June 30, 2021, the group’s current liabilities exceeded its current assets by J$73.2 million coming from J$18.3 million in 2020.

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