Remote Monitored Systems PLC (LON:RMS) and Braveheart Investment Group Plc (LON:RMS) have decided to turn control of Gyrometric Systems Limited back to its founders for a nominal consideration.
The companies, in parallel statements, said Gyrometric had potential opportunities to exploit its world class intellectual property but would require significant investment over the next 12 months. They believe the best approach is to hand shares in the company back to the founders.
A shareholders' agreement will be terminated, loans to Gyrometric Systems will be written off, and minority shareholdings will be retained – with RMS and Braveheart left with 15% and 6.43% respectively, down from 58% and 19.5%.
In 2020, Gyrometric had revenues of £83,000 and made a loss of £105,000.
RMS said the current value of its investment in Gyrometric, including the loans, is around £500,000 and will be written off.
Braveheart said that the book value of its investment in the company was £200,000 (at the end of September 2020) and it expects to write it down to £1.
Trevor Brown, Braveheart chief executive, said: “The decision to enter into the SPA was not instigated by Braveheart, however, as a minority shareholder we were limited in our ability to effect an alternative arrangement."