Earnz agrees conditional building-services purchase worth up to £23.55 million

Earnz ($EARN-LSE) signed a conditional agreement to acquire Gem New Co, into which selected GEM Environmental Building Services assets will be transferred. Maximum consideration is £23.55 million: an initial £10 million comprises £4 million cash, £2 million of loan notes and £4 million of shares, with up to £13.55 million of performance-linked deferred payments.

The transaction would expand Earnz’s building-maintenance and heat-network work with local authorities. Funding plans include a roughly £4.1 million placing at 4 pence, up to £0.7 million of convertible financing, a separate retail offer and a £5 million revolving facility. These arrangements remain conditional, and the acquisition has not closed. The maximum purchase price is not all payable upfront, while tender opportunities disclosed by the target are not secured revenue. New shares would materially dilute existing holders.

Sources:

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