Delivery platform Sorted is on the brink of being sold.
The company, which was founded in 2010 by David Grimes with the launch of MyParcelDelivery.com, has gone on to become a global software company.
Now it has emerged that AIM-listed Location Sciences, a location data insight and verification company, has entered into a secured convertible bridge loan agreement with Sorted to lend it up to 拢2.6 million for 鈥榳orking capital purposes鈥�.
The company has also entered into exclusive non-binding heads of terms regarding a potential acquisition of the entire issued share capital of Sorted for a nominal 拢1.
It is anticipated that as part of the proposed acquisition, Location Sciences will assume around 拢4m of Sorted’s outstanding debt.
If the proposed acquisition proceeds, it鈥檚 intended that the existing subscribers, including shareholders of Sorted, will be given the opportunity to participate in a cash subscription for up to 拢5m of new shares in Location Sciences to seek to align their interests with those of existing Location Sciences shareholders.
The planned acquisition would constitute a reverse takeover under AIM rules and is subject to the completion of due diligence and satisfactory negotiations.
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Location Sciences has agreed to provide Sorted with a secured bridge loan facility of up to 拢2.6m to be made in tranches. The loan has a redemption premium of 50% and is secured by a first fixed and floating charge over Sorted’s business and assets granted.
Sorted’s unaudited management accounts for the year ended September 30th 2022 state that the company generated revenues in that year of 拢6.4m and a loss before tax of around 拢14.5m. At the same time Sorted had assets of approximately 拢32.4m.
Founded in 2010, Sorted grew rapidly as its technology allowed customers to easily track deliveries and returns or exchange parcels.
Between January to December 2020, Sorted enjoyed a 100% increase in shipment volume versus the whole of 2019.听In January 2021 alone,听Sorted saw a 243% growth through its SaaS platform in comparison to the same period in 2020. 听
The company serves more than 500 customers across the UK and US, from mid-sized, growing eCommerce businesses to multi-national organisations.
In December 2021, Sorted raised 拢30m ($40m) in a Series C investment round led by Chrysalis Investments and Arete Capital Partners.
At the time Carmen Carey, who took over as CEO from David Grimes in September 2021, said the firm would use the funds to 鈥榟ire at pace鈥� and support their US ambitions.
The delivery platform employed more than 115 people at the time and also acquired fellow Manchester firm Clicksit, an automated returns startup.
This morning Carey told 老九品茶Cloud: 鈥淥ur team continues to focus on delivering an outstanding service to our customers.鈥�
After deciding to step back from being the day-to-day CEO, 听Grimes became a non-executive director.