Minds + Machines Group Ltd, in its financial results statement, said it expects to complete the tender offer to return US$80mln of cash to shareholders in the early October.
The financial results cover the 12 months ended 30 June, in which the company agreed the sale of the material portion of its website domain business to GoDaddy (NYSE:GDDY) for US$120mln. The transaction became effective on 11 August.
During a transition period, the company is subsequently winding down certain other operations and facilitating the distribution of the sale proceeds to shareholders. It will in due course then become a listed cash-shell.
Through a tender offer the company is to buy back some 604.16mln shares from Minds + Machines shareholders, to return up to US$80mln of cash to shareholders.
"We are pleased that during the period, while negotiating and ultimately completing the sale of our registry business, our people remained focused and delivered improved cash flows that capitalised on the changes we made at the end of 2020. The result is additional cash that, combined with the registry business sale proceeds, is enabling us to return material cash to shareholders.
"We are now in the process of delivering the transition services agreed with GoDaddy (NYSE:GDDY) Registry and disposing of, or otherwise winding down, our RSP Business. Whilst the transition services are being provided on a cost recovery basis, the company's ongoing administrative and other public company costs will result in operating losses for the group going forward.”
Reporting on the year to end-June, the company noted a US$783,000 loss from continuing operations, whilst the discontinued operations – the Registry and RSP businesses – were reported to have made a US$3.38mln loss.
The company had US$10.4mln of cash at the end of June.