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Eight Capital Partners PLC on Friday said it has received a ‘significant’ transaction fee for advising on a recent listing.
The technology and media-focused investment firm said it has received £1.0 million, half of which has already been paid in cash, with the balance to be paid in cash over the next few months.
Eight Capital noted that this transaction alone is greater than the revenue it generated in 2021. The company reported £772,000 in revenue for the year and a pretax loss of £98,000.
The company said that the fees also represent a ‘very significant’ proportion of its revenue in the year-to-date. It explained that revenue in the first six months of 2022 have been modest and mainly derive from management service agreements.
Eight Capital expects to publish its half-yearly interim statement ‘shortly.’
It added that the transaction fees will also provide the company with ‘significant’ cash to develop the business.
Progress towards ‘transforming’ the company's balance sheet has also been made, Eight Capital said, as it aims to consolidate and expand its service offering.
It also hopes to ‘develop a platform from which it can develop as a multi-faceted financial services group, whilst at the same time providing a stronger base from which it can raise third party capital.’
The company said it is close to reissuing its circular to shareholders, which seeks a waiver of obligations under Rule 9 of the City Code on Takeovers & Mergers for the conversion of existing debt into equity in Eight Capital.
Eight Capital shares were untraded at 0.0255 pence each on AQSE in London on Friday morning.
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