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SmartPay says it is trying to remove or mitigate any earn out provisions from all its recent acquisitions to ensure value is maintained for shareholders.
The electronic product distribution and payments processing provider said it had issued 10 million ordinary shares at 1c each in full and final settlement of its earn out obligations from the purchase of Merchant IP Services (MIPS) in March.
The $100,000 worth of shares were 1.59 per cent of SmartPay's total issued ordinary share capital.
SmartPay managing director Ian Bailey said that following the purchase of MIPS earlier this year, SmartPay had reached an agreement with the previous owners to bring forward and settle all of SmartPay's earn out provision obligations of the original sale and purchase agreement.
SmartPay had also acquired MIPS finance arm, MIPS Financial Services, which offers its own finance lines and provision of rental services to MIPS and SmartPay customers.
SmartPay shares last traded on October 3 at 0.9c.
- NZPA
