- Flamingo Ai (FGO) will sell two of its subsidiaries, Flamingo Customer Experience and Flamingo Ventures, to BDNM Investments
- The company entered into a $500,000 binding share purchase agreement with BDNM
- Under the agreement, $100,000 will be retained under a warranty security deed for 12 months
- BDNM plans to continue business operations, servicing existing clients and contracts and further developing the smart hub platform
- Flamingo Ai closed at 0.2 cents
Flamingo Ai (FGO) has entered a $500,000 binding share purchase agreement with BDNM Investments for the sale of its two subsidiaries.
The deal is for the company’s Flamingo Customer Experience and Flamingo Ventures.
Under the agreement with the Australian and U.S. company, $100,000 of the purchase price will be retained under a warranty security deed for 12 months. The total price may be reduced if any prepaid revenue is received by completion or if BDNM assists in the interim.
However, for the transaction to be completed, it will need approval from the Foreign Investment Review Board (FIRB) and Flamingo shareholders.
BDNM has announced it wants to continue to operate the business and service. It plans to further develop its smart hub platform in Australia and the United States.
BDNM Director, Natraj Balasubramaniam, says the company is pleased with the purchase.
“BDNM is excited by the Flamingo AI acquisition which will allow us to combine our expertise in AI to assist in the future expansion of the Flamingo AI business, both in terms of clients, range of products and services and countries of operation,” he said.
The acquired company’s staff have left the businesses, although Bryn Hardcastle and Zane Lewis will remain on the board and Dr Catriona Wallace will stay as a non-executive director. This is to assure a smooth transition of the business, its contracts and clients.
Flamingo claims it will have about $1.7 million in cash when the transaction is complete and is seeking to purchase additional assets.
Flamingo Al is trading steady at 0.2 cents.