The acquired holding company, East Worlidge Holdings (EWH), is the owner of John East & Partners (JEP). JEP provides corporate financial advice and raises capital for smaller companies seeking to float.

The deal comprises £2.3 million cash, with the remaining £2.6 million satisfied through a placing of some 7.4 million shares on AIM. The agreement is conditional upon a successful placing.

Further cash may be available, based on a pound for pound basis of the amount raised by sales of EWH’s investments in the near future. The sum payable for EWH will be adjusted on the amount it raises above, or below, the £900,000 already taken into consideration in the deal amount.

JEP was shortlisted by Growth Company Investor for the AIM adviser of the year in 2003, 2004, 2005 and 2007.

Before auditing and tax EWH earned a net profit before tax of £452,000 to January this year, with a turnover of £2.36 million in the same period.