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SEQUOIA FINANCIAL GROUP LTD — Capital/Financing Update 2008
Feb 27, 2008
65767_rns_2008-02-27_9b3df355-9f1a-418e-bd64-022fb172987c.pdf
Capital/Financing Update
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Your choice. Your financial success
MARKET ANNOUNCEMENT
28 February 2008
Adjustment to acquisition price of The Cube Financial Group Pty Ltd
On 18 December 2006, MDS Financial Group Limited (“the Company”) completed its acquisition of The Cube Financial Group Pty Ltd (“Cube”) receiving transfers for the entire issued share capital of Cube in consideration for issuing shares in the Company to the Cube shareholders.
On 27 February 2008 an agreement was executed with the former Cube shareholders to adjust the consideration provided to them by the Company for the acquisition of Cube. The adjustments are:
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cancellation of 15 million shares in the Company currently held by the former Cube shareholders; and
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a payment of $400,000 by the former Cube shareholders to the Company.
Since its acquisition, the Cube business has underperformed relative to management expectations and made negative contributions to the results of the Company. The disappointing financial performance of the Cube business was announced to the market on 1 June 2007 and noted in the Company's Annual Report for 2007.
Allan Shek Company Secretary
69 Nicholson Street, St Leonards NSW 2065, Australia P: +61 2 9438 3777 I F: +61 2 9438 3444 I www.mdsfinancial.com.au