Tesserent Ltd Latest MyNet/Sonar IP Acquisition Update

Tesserent (ASX: TNT) is pleased to provide shareholders with an update regarding a recent amendment to the agreement concerning the MyNet/Sonar IP sale to Family Zone Cyber Safety Limited (ASX: FZO).

KEY TAKEAWAYS:

Background

• Tesserent sold the Sonar/MyNet IP to Family Zone for $3.80M, consisting of $3.50M cash and $0.3M in FZO shares. Payment for the IP was agreed based on the following payment schedule:
  • $0.25M cash deposit;
  • $0.75M cash on completion;
  • $0.3M FZO shares 9based on issue price of $0.30);
  • $0.50M cash due 28^th February 2017; and
  • $3.00M cash due 30^th May 2017.

• Tesserent has also retained a number of Sonar customers and was obliged to pay a monthly licence fee to FZO for the use of the IP.
• As advised to the market on the 10^th May 2017, Tesserent restructured the final receivable due 30^th May 2017 noting that $1.00M cash was received in April with the balance of $1.00M remaining due on the 20^th May 2017.

Recent Amendment

In consideration for Tesserent agreeing to the renegotiated agreement and payment terms for the finish payment of $1.0M from Family Zone.

Tesserent has agreed to accept $1.15M on the following terms:

• $0.50M immediately;
• $0.25M in FZO shares (based on 1M shares at market price of $0.25) immediately; and
• $0.40M payable in six equal monthly instalments commencing July 2017.

Additionally, the parties have agreed that Family Zone will take over the technical and commercial responsibilities for all remaining Tesserent Sonar Customers.

As previously advised to the market, Sonar customers are billed in advance for provision of services and Tesserent will retain this invoiced revenue.

Tesserent will however make a one-off payment to Family Zone of $0.18M given that Family Zone will now provide all future services to the Sonar clients- Tesserent will no longer pat a license fee to FZO.

This agreement is expected to improve Tesserent’s position by $0.20M over three years. Furthermore, this agreement allows Tesserent to redeploy resources and focus on a number of higher-growth opportunities, especially with regard to new channel partnership opportunities in the telco space.

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