Purplebricks Group PLC (AIM:PURP) shares sank another 39% to 0.80p after it agreed to sell all its business for just £1 to fellow online estate agent Strike and cancel its stock market listing.
By selling its business and the Purplebricks brand to Strike the company said its cash balance on completion, "up to a maximum of £5.5mln" being retained with the intention of distributing them to shareholders, minus some substantial costs and other liabilities.
A proposed sale "is expected to deliver a small return to Purplebricks shareholders", the company said.
Chief executive Helena Marston is resigning from her role and the rest of the board, other than finance chief Dominique Highfield plan to step down following the AIM cancellation, while other employees will transfer to Strike, minus some expected job cuts.
Directors have unanimously concluded that it is in the best interests of the company to proceed with the sale and intend to recommend the deal to shareholders, as well as voting in favour themselves.
With directors and major shareholders AVIV Group and JNE Master Fund intending to vote in favour of the plans, there is support from roughly 43.8% of the shares.