PLANS for pharmacy software developer Corum Group Limited to issue shares to a company linked to Pharmacy4Less owners, Feras and Assad Karem, are on hold.
In an announcement to the Australian Securities Exchange (ASX), the listed tech company revealed that "the first milestone associated with its Subscription Deed with BAMM Group Administration Pty Ltd, to develop a cloud-based head office solution, has not been met".
The deal had been set to see Corum build on the know-how developed around its popular RPM Head Office application to create its first major SaaS (Software as a Service) platform, to be marketed as Corum Clear Head Office.
Under the terms of the deal, which was approved by Corum shareholders last Nov, an initial tranche of 31.8 million units had been due to be issued to BAMM on 30 Jun, with a second allocation of the same amount due to be issued on 31 Jan 2021.
The shares had been due to be issued at "nil cash consideration" and deemed to be worth 3.6c each.
"Since the first milestone has not been met, the first tranche of shares will not be issued to BAMM under the current shareholder approval," Corum Chair, Nick England said.
"The Board of Corum is evaluating the company's options and will update shareholders when appropriate."
As well as the share placement, Corum had also granted a contractual right to BAMM to participate in future placements.
Factors related to the failure to meet the initial milestone associated with the agreement have not been revealed.
The above article was sent to subscribers in Pharmacy Daily's issue from 01 Jul 20
To see the full newsletter, see the embedded issue below or CLICK HERE to download Pharmacy Daily from 01 Jul 20
