Following on from the announcement made by the Company on 19 October 2018, Safestyle UK plc (LON:SFE) announced today that it has entered into an agreement with Mr M. Misra, who was a party to the Company’s dispute involving NIAMAC Developments Ltd (trading as SafeGlaze UK), and which is currently in the process of rebranding following the recent legal settlement with Safestyle.
Whilst the full detail of the agreement is confidential, it encompasses a five year non-compete agreement and the provision of services by Mr Misra in support of the continued recovery of Safestyle. The Company has agreed consideration with Mr Misra subject to the satisfaction of both clear performance conditions by him over the period to Q4 2020 and Safestyle’s trading performance in 2019 being above existing market expectations.
Subject to satisfying the strict terms of the agreement the consideration will take the form of an allotment by Safestyle to Mr Misra of four million ordinary shares of 1 pence each in the capital of the Company and a payment of cash consideration of between £nil and £2.0 million. Both the allotment of Shares and payment of the Cash Fees, if any, would only be made in Q4 2020.
Mike Gallacher, Chief Executive of Safestyle UK plc, commented:
“The three phase turnaround plan that was outlined in our Interim Results is underway and is already helping to stabilise the Group before returning it to profitability and then accelerating growth. The focus of the whole Group remains on delivering this plan quickly and effectively.”