- Wameja (WJA) and Mastercard have extended the term and timeline of their scheme implementation agreement (SIA)
- The company now expects to stop trading on the ASX on April 30, 2021, when it will be acquired by Mastercard
- In related news, Wameja is managing the audit of third-party intellectual property at the heart of a potential indemnity claim
- The company believes that a legitimate material claim under its indemnity with Seamless Distribution Systems is unlikely
- Wameja is in the grey and trading at 12 cents per share
Wameja (WJA) and Mastercard have extended the term and timeline of their scheme implementation agreement (SIA).
On September 10, 2020, the companies announced that Wameja would be acquired by Mastercard. The proposed acquisition would take place through an SIA with Burst Acquisition, a company controlled by Mastercard.
Wameja and Mastercard agreed to extend the SIA’s terms in order to accommodate a revision to the transaction timetable for the scheme of arrangement. Under the new extension, Wameja now expects its last day of trading on the ASX to be on April 30, 2021.
In related news, Wameja is managing the audit of third-party intellectual property at the heart of a potential indemnity claim. Back in October 2020, the company was notified by Seamless Distribution Systems about a potential claim.
Seamless was the purchaser under the sale and purchase agreement for Wameja’s core business in July of 2019. Through the sale and purchase agreement, Wameja provided Seamless with an indemnity.
Seamless claimed that an indemnity claim existed in respect of licences for certain third-party intellectual property, which was used by Botswana Telecommunications Corporation as a user of eServGlobal’s “Paymobile” platform.
Seamless later followed up with further claims under the indemnity, regarding the same third-party intellectual property and its use by multiple customers.
The audit of the intellectual property embedded in the Paymobile platform is progressing.
Wameja believes that a legitimate material claim under its indemnity with Seamless Distribution Systems is unlikely. The company’s board of directors has expressed optimism that the potential indemnity claims will be resolved.
Wameja is in the grey, trading at 12 cents per share at 2:52 pm AEDT.