XPON Technologies Group Ltd (ASX:$XPN) Divestment Announcement

XPON Technologies Group Ltd (ASX:XPN) has announced the successful divestment of its UK based Application Modernisation (AppMod) business to Peppermint Innovation Limited (ASX:PIL). The divestment is expected to reduce XPON's annual cash burn by approximately $1.3 million and allows the company to concentrate on its core Martech business while exploring other strategic opportunities.

Executive Commentary on Divestment

We are pleased to have successfully concluded the divestment process. The talent and passion of the team in the AppMod business is very strong and we are pleased to see the business is going to a good home at Peppermint. We wish them all the best under the new ownership. This enables the remaining team to focus on the core Martech business, which is well supported by our clients both domestically and internationally.

Summary of XPON's Divestment Announcement

XPON Technologies Group Ltd (ASX:XPN) has completed the divestment of its non-core UK based Application Modernisation (AppMod) business to Peppermint Innovation Limited. The divestment is expected to reduce annual cash burn by approximately $1.3 million, allowing XPON to focus on its core Martech business and explore other strategic opportunities. The transaction includes the acquisition of XPON's AppMod business, comprising two subsidiary companies, by Peppermint with a payment of £1. The divestment is anticipated to result in a reduction in both revenue and expenses for the XPON Group of approximately 15%. XPON Founder, Managing Director and Group CEO, Matt Forman, expressed satisfaction with the conclusion of the divestment process and conveyed best wishes to the AppMod business under the new ownership. The announcement signifies XPON's commitment to streamlining its operations and concentrating on its core business areas.