ThinkSmart Limited Business Update (6451A)
February 03 2022 - 8:31AM
UK Regulatory
TIDMTSL
RNS Number : 6451A
ThinkSmart Limited
03 February 2022
3 February 2022
ThinkSmart Limited
("ThinkSmart" or the "Company" which together with its
subsidiaries is the "Group")
Business Update
ThinkSmart Limited (AIM: TSL), a specialist digital payments
platform business, wishes to provide an update on its operating
business.
As set out in the 2021 AGM Chairman's statement on 10 November
2021, the Group's strategic focus is on delivering value to
shareholders via its Clearpay asset, which has now been exchanged
for 618,750 shares in Block, Inc (NYSE: SQ), together with the
provision of the outsourced call centre customer support service
for Clearpay and the managed wind-down of its legacy retail
consumer and business finance offerings to deliver net positive
cashflows. Shareholders will be aware that the Group ceased
originating any new business volumes from February 2021.
As set out in note 23 to the ThinkSmart Annual Report for the
year to 30 June 2021, under the terms of the Group's funding
arrangement with Secure Trust Bank ("STB"), where STB is the lessor
and ThinkSmart acted as STB's agent under an Operating Agreement,
the Group had entered into a financial guarantee contract with STB
in support of which the Group had deposited GBP2m with STB.
Under the terms of the Operating Agreement, the Group has now
agreed with STB to terminate the Operating Agreement and to
purchase the portfolio of leases, funded under the Operating
Agreement, from STB for GBP1.2m. In return STB will refund the
GBP2m deposit to ThinkSmart which will result in a net GBP0.8m
increase in the Group's cash. It is expected that this transaction
will complete this month.
The Group will continue to service the leases, ensuring the fair
treatment of customers, during the orderly wind down and collect
out of the portfolio of leases. The lease portfolio purchased has a
minimum term gross receivable balance of GBP1.25m and an average
term outstanding of 10 months. ThinkSmart will continue to be
entitled to all rental income and revenue from sales of leased
equipment following the end of the initial term of the leases, and
is managing its cost base accordingly so that its operating
business continues to deliver net positive cashflows.
For further information please contact:
ThinkSmart Limited Via Buchanan
Ned Montarello
Canaccord Genuity Ltd (Nominated Adviser
and Broker)
Sunil Duggal
Andrew Potts
Tom Diehl +44 (0)20 7523 8350
Buchanan
Giles Stewart
Chris Lane
Toto Berger +44 20 7466 5000
Notes to Editors
About ThinkSmart Limited
ThinkSmart's roots are as a specialist digital payments platform
business. Following the sale of its remaining 10% shareholding in
Clearpay in January 2022, the Group holds shares in NYSE listed
Block, Inc (NYSE: SQ). The Group also provides an outsourced call
centre customer service and support service to Clearpay and is
managing the wind-down of its leasing business.
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END
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