Location Sciences sells business, contract to Digital Envoy

Location Sciences announced on Friday that it has agreed to sell its insights dashboard and four contracts pertaining to its location data and insights business toUnited States-based IP intelligence company Digital Envoy for up to $0.7m in cash.

The AIM-traded firm said Digital Envoy would pay $0.58m on closing, and an additional $0.13m within three months of the closing date, subject to certain post-closing warranties and covenant milestones being satisfied.

For the year ended 31 December, the assets contributed revenues of £0.19m, representing 18% of the company's total revenues, and a loss before tax of £0.22m to the company.

“On 21 June, the company announced that following a business review, the board decided it was important to reduce the company's operating costs and bolster its cash reserves,” the board explained in its statement.

“Accordingly, the disposal allows the company to significantly reduce its ongoing operating costs and also injects up to an additional $0.7m, which the company can use for working capital purposes.

“Following the disposal the Board will continue to review its strategic options and will update shareholders accordingly.”