TradeLabs Plc

August 21, 2009 05:01 ET


                                                                                         21 August 2009
                                           TradeLabs PLC
                                           (PLUS: TLAP)
                                  ("TradeLabs" or "the Company")
                                 ACQUISITION - RIGHT DEAL LIMITED
The Directors of TradeLabs PLC, the algorithm trading and distribution company, are pleased to announce the
acquisition of Right Deal Limited ("RDL").

Under the terms of the acquisition, TradeLabs will pay up to USD 1,250,000 for 100% of the shares of Right
Deal  Limited.  Approximately USD 28, 500 of the total consideration will be paid in shares  to  the  sole
Director  of  RDL against a director's loan, and the total number of shares that will be  issued  will  be
5,050,505  New Ordinary Shares of TradeLabs at 15 pence per share (based on the current exchange  rate  of
USD  1.65).   The  remaining consideration will be paid on an earn-out basis, assuming  certain  financial
milestones are achieved. The terms of the earn-out are conditional on the pre-tax results of each  of  the
three  financial years ending 31 December 2011, exceeding USD 250,000 and will be paid as 50% in cash  and
50%  by  the  issue of share options. Each tranche of options issued will have an expiry date three  years
after their issuance and the option terms will also be announced to the market at that time.

RDL is a Hong Kong based IT distribution company established in 2002, providing both hardware and software
to  primarily  to customers in the Far East but also to the Middle East and Europe. It has  recorded  an
unaudited  gross  profit of USD 506,613 over the six months ended 30th June, 2009.  The audited  pre-tax
profit for the year ended 31 December 2008 was USD 80,257 compared with a profit of USD 60,941 in  2007.
RDL's  turnover for the year ended 31 December 2008 was USD 56,237,184 compared with a turnover  of  USD
30,369,959 for 2007.

The  Directors of TradeLabs believe that as the IT and software technology sectors draw closer together,
the  opportunities for both companies to find new customers and markets will increase. Hong  Kong  is  a
high  growth area in which the Company wishes to expand its operations, therefore this acquisition  will
be of great benefit.

Niraj Goel, CEO of TradeLabs, said: "It is the nature of private companies that their commercial value is
frequently  understated.   Right Deal's proven underlying profitability  makes  it  an  ideal  fit  with
TradeLabs.  We see Right Deal working closely with our Singapore office to market and sell the TradeLabs
programmed trading terminals in Hong Kong and mainland China."

Tristan Tabori, the majority shareholder of Right Deal Limited, said: "Right Deal LTD is delighted to be
joining  forces  with  TradeLabs  PLC, a company with a strong vision  coupled  with  sound  technology.
Together  we  will  be  stronger  and  able to reach new market segments  currently  missing  from  both
companies'  business  portfolios. We look forward to strong business growth coming  from  the  synergies
generated by this acquisition."

Following  this transaction the total number of shares in issue is 205,050,505 ordinary shares  and  the
Directors continue to hold 165,260,279 representing 80.59% of the issued share capital.  The new  shares
will rank equally with existing Ordinary Shares and will be issued on Tuesday 25th August 2009.

The Directors of the Issuer accept full responsibility for the contents of this announcement.

Contact details:

TradeLabs PLC
Marcus Yeoman                   +44 (0)7970 028442

Investor Relations
Claire Hocken                   +65 8135 1831

St. Helen's Capital Plc
Duncan Vasey/Mark Anwyl         +44 (0) 207 628 5582

Contact Information

  • TradeLabs Plc