SINGAPORE (June 5): Edition is proposing the acquisition of Israel-based Hyperlync Technologies to invest in the technology sector, which it believes has potential for growth.

Founded in 2008, Hyperlync is a provider of cyber-security solutions for personal content that enables consumers and enterprises to access, manage and protect their content no matter where it resides.

On Monday, the company entered into a binding memorandum of understanding (MOU) to acquire a 51% stake in the enlarged share capital of Hyperlync.

As part of the proposed acquisition, Edition will first extend a bridging loan of $1 million to the cybersecurity solutions provider. The bridging loan is expected to be repaid in full with interest at the end of six months.

Subject to the full drawdown of the bridging loan, among others, Edition will acquire new shares representing 51% of the enlarged share capital of Hyperlync by extending a credit facility of up to US$3.5 million ($4.7 million) at an interest rate of 8% per annum.

The facility shall be made available to Hyperlync for a period of two years.

Both the bridging loan and the credit facility will be funded via internal resources.

Edition will further grant Harry Fox, the chief executive officer and founder of Hyperlync, a call option for new shares representing up to 20% of the total enlarged share capital of Edition, if the aggregate profits before tax of Hyperlync in FY19 and FY20 reach certain performance targets that have been set out.

As its financial performance is currently solely dependent on one core business – agriculture – the company believes the proposed acquisition will provide a new income stream which will improve the financial performance.

The group add that Hyperlync has developed four marketable end products, and is ready to sell in the international markets. It has so far secured six corporate customers.

Shares of Edition closed 0.1 cent lower, or down 16.7%, at 0.5 cent on Monday.