Exhibit 2.29
TRANSACTION CLOSING DOCUMENT
DATED 30 APRIL, 2022
Genius Group Limited (the “Purchaser”), a public company duly organised and operating under the Laws of Singapore under registration number UEN 201541844 C, having its registered seat at 8 Amoy Street, #01-01 Singapore 049950 represented by Roger James Hamilton
and
Simon Zutshi (“SZ”), an individual with a principal place of residence at Flat 2, 90 Harborne, Road, Birmingham, B15 3UH
WHEREAS:
(1) | On the basis of the Share Purchase Agreement dated 24 June, 2022, GG acquired from Simon Zutshi the Shares of: |
(i) | Property Investors Network Ltd, a private company limited by shares (hereinafter referred to as “PIN”), registered under the number 8166332 at the Register for the Companies for England and Wales with its registered office at Quadrant Court Calthorpe Road Edgbaston Birmingham B15 1TH; and |
(ii) | Mastermind Principles Limited, a private company limited by shares (hereinafter referred to as “MPL”), registered under the number 07106363 at the Register for the Companies for England and Wales with its registered office at Quadrant Court Calthorpe Road Edgbaston Birmingham B15 1TH. |
Hereinafter referred to as the “Companies”
The Parties agreed as follows:
1. | The transaction is closed as of 30 April 2022. |
2. | The Seller delivered the transaction documents with respect to the Companies in particular: |
(a) | Certified extract of the resolutions passed by the Board of Property Investment Network Ltd. (hereinafter referred to as “PIN”) and Mastermind Principles Ltd (hereinafter referred to as “MPL”) approving the transfer of the Sale Shares from the Sellers to the Purchaser. |
(b) | Certified extract of the register of members and the share transfer register of the Property Investment Network Ltd. (hereinafter referred to as “PIN”) and Mastermind Principles Ltd (hereinafter referred to as “MPL”) evidencing the entries relating to the transfer of the Sale Shares from the Sellers to the Purchaser - Genius Group Limited registration number UEN 201541844 C with registered seat at 8 Amoy Street, #01-01 Singapore 049950 |
(c) | New Share certificate with respect to the Sale Shares, reflecting the name of the Property Investment Network Ltd. (hereinafter referred to as “PIN”) and Mastermind Principles Ltd (hereinafter referred to as “MPL”) as the registered holder of the Sale Shares. |
3. | The price shall be paid and calculated by the Purchaser due to the provision of Section 3 point 3.1 and 3.2 of the Sale Purchased Agreement dated November 30, 2021 in the following way: |
(i) | Consideration: |
Total Consideration is agreed to be GBP 14,617,408 divided between entities as follows-
If to PIN3,515,770.00
If to MPL11,101,638.40
(ii) | Purchase price calculated as 2x Revenue in 2020 or 10x EBITDA whichever is greater |
- | 2x Revenue – (Revenue 3,365,813, GBP 6,731,626) |
- | 10x EBITDA – (EBITDA 1,461,741 GBP 14,617,408) |
(iii) | Cash Portion - 10% in Cash - GBP 1,461,741; |
(iv) | GG Shares - GBP 13,155,667 The amount has been converted to USD 17,199,720 with the exchange rate of 1.3074 to issue shares at $34.87 multiplied by 6 for share split. Total shares issued – 2,959,518; |
(v) | Loan to MPL - to be paid in 7 instalments of GBP 1,500,000.00 - of which GBP 200,000.00 paid on 29 April 2022 and GBP 200,000.00 paid on 27 May 2022; |
4. | The Parties acknowledge that the Purchased Price has been calculated based on the following documents which constitutes the Annexure to this Transaction Closing Document: |
i. | Balance Sheet - 30th April 2022 |
ii. | EBITDA Calculation - FY 2020 |
THIS TRANSACTION CLOSING DOCUMENT has been agreed by the Parties and entered into on the date stated at the beginning of this Document.
/s/ Simon Zutshi | Roger James Hamilton |
Simon Zutshi | Roger James Hamilton, on behalf of |
| Genius Group Limited |
Balance Sheet | | | | | |
Combined (Eliminated) | | | | Spot Rate | 1.257166 |
As at 30 April 2022 | | | | | |
| PIN | MPL | Elimination | Total | Total (in USD) |
Assets | | | | | |
Current Assets | | | | | |
Cash and cash equivalents | 5,841 | 256,220 | | 262,061 | 329,455 |
Accounts receivable, net of allowance | 16,529 | 350,313 | | 366,842 | 461,181 |
Other receivable | | | | 0 | 0 |
Notes receivable - current portion | | | | 0 | 0 |
Inventory | | | | 0 | 0 |
Prepaid expenses and other assets | | 7,459 | | 7,459 | 9,377 |
Loans receivable - current portion | | 12,995 | | 12,995 | 16,337 |
Loans receivable - related parties - current portion | 1,059,494 | 4,590,534 | -1,009,494 | 4,640,534 | 5,833,922 |
Total Current Assets | 1,081,864 | 5,217,521 | -1,009,494 | 5,289,892 | 6,650,272 |
| | | | | |
Property and equipment, net | 569 | 19,309 | | 19,878 | 24,990 |
Intangible assets, net | | | | 0 | 0 |
Operating lease right-of-use asset | | | | 0 | 0 |
Investments at fair value | | | | 0 | 0 |
Investment in Subsidiary | | | | 0 | 0 |
Goodwill | | | | 0 | 0 |
Deferred tax asset | | | | 0 | 0 |
Other non-current assets | | | | 0 | 0 |
Loans receivable - related parties - non-current portion | | | | 0 | 0 |
Total Assets | 1,082,434 | 5,236,830 | -1,009,494 | 5,309,770 | 6,675,262 |
| | | | | |
| | | | | |
Liabilities and Stockholders’ Equity | | | | | |
Current Liabilities | | | | | |
Accounts payable | 1,855 | 42,271 | | 44,126 | 55,474 |
Accounts payable, related parties | | | | 0 | 0 |
Accrued expenses and other current liabilities | 112,501 | 1,137,064 | | 1,249,565 | 1,570,911 |
Deferred revenue | | | | 0 | 0 |
Operating lease liabilities - current portion | | | | 0 | 0 |
Loans payable - current portion | | 18,159 | | 18,159 | 22,829 |
Loans payable - related parties - current portion | 1,429 | 1,009,494 | -1,009,494 | 1,429 | 1,796 |
Income tax payable | | | | 0 | 0 |
Total current liabilities | 115,785 | 2,206,988 | -1,009,494 | 1,313,280 | 1,651,010 |
| | | | | |
Operating lease liabilities - non current portion | | | | 0 | 0 |
Loans payable - non current portion | 124,423 | 601,349 | | 725,771 | 912,415 |
Loans payable - related parties - noncurrent portion | | | | 0 | 0 |
Convertible debt obligations | | | | 0 | 0 |
Provision for reinstatement costs | | | | 0 | 0 |
Other non-current liabilities | | | | 0 | 0 |
Deferred Tax Liability | | | | 0 | 0 |
Total liabilities | 240,208 | 2,808,337 | -1,009,494 | 2,039,051 | 2,563,425 |
| | | | | |
Stockholders’ Equity: | | | | | |
Contributed capital | 5 | 2 | | 7 | 9 |
Minority Interest | | | | 0 | 0 |
Subscriptions receivable | | | | 0 | 0 |
Derivative liability | | | | 0 | 0 |
Treasury stock, at cost | | | | 0 | 0 |
Accumulated other comprehensive income (loss) | | | | 0 | 0 |
Retained earnings | 842,221 | 2,428,491 | | 3,270,712 | 4,111,827 |
Reserves | | | | 0 | 0 |
Total Stockholders’ Equity | 842,226 | 2,428,493 | 0 | 3,270,719 | 4,111,836 |
Total Liabilities and Stockholders’ Equity | 1,082,434 | 5,236,830 | -1,009,494 | 5,309,770 | 6,675,262 |
| | | | | |
CHECK | 0 | 0 | 0 | 0 | 0 |
Net Asset Acquired | 842,226 | 2,428,493 | 0 | 3,270,719 | 4,111,836 |
Balance Sheet | |
Property Investors Network Ltd | |
(Numbers in GBP) | |
| |
| 30 Apr 2022 |
| |
Assets | |
| |
Bank | |
1202 Bank Transactions | 0.01 |
Property Investors Network Ltd | 3,562.08 |
Stripe payments | 2,124.85 |
Total Bank | 5,686.94 |
| |
Current Assets | |
Accounts Receivable | 16,529.33 |
BG2 Ltd- Loan Account | 50,000.00 |
Mastermind Principles | 1,009,493.84 |
Petty Cash | 154.25 |
Total Current Assets | 1,076,177.42 |
| |
Fixed Assets | |
Computer Equipment | 1,892.36 |
Less Accumulated Depreciation on Computer Equipment | -1,323.28 |
Office Equipment | 2,816.21 |
Less Accumulated Depreciation on Office Equipment | -2,816.00 |
Total Fixed Assets | 569.29 |
| |
Total Assets | 1,082,433.65 |
| |
Liabilities | |
| |
Current Liabilities | |
Accounts Payable | 1,854.65 |
Accruals | 1,500.00 |
Directors’ Loan Account | 1,429.00 |
NIC Payable | -2,538.63 |
PAYE Payable | 2,288.00 |
Pensions Payable | 344.03 |
Provision for Corporation Tax | 85,513.30 |
Rounding | -0.02 |
VAT | 25,394.75 |
Alan Webb Loan Account | 0 |
Total Current Liabilities | 115,785.08 |
| |
Non-Current Liabilities | |
Lloyds Bounceback Loan | 40,201.10 |
The Funding Circle | 84,221.48 |
Total Non-Current Liabilities | 124,422.58 |
| |
Total Liabilities | 240,207.66 |
| |
Net Assets | 842,225.99 |
| |
Equity | |
Capital - x,xxx Ordinary Shares | 5 |
Current Year Earnings | 56,583.45 |
Retained Earnings | 785,637.54 |
Total Equity | 842,225.99 |
Balance Sheet | |
Mastermind Principles Ltd | |
(Numbers in GBP) | |
| |
| 30 Apr 2022 |
| |
Assets | |
| |
Bank | |
Amex | -14,673.22 |
Bartercard | 66,202.27 |
BBX | 64,896.52 |
Mastermind Principles | 135,132.83 |
Petty Cash account | 230.32 |
Savings Account | 1.2 |
Squareup Terminal Payments | 0 |
Stripe payments | 4,430.26 |
Total Bank | 256,220.18 |
| |
Current Assets | |
Accounts Receivable | 556,167.49 |
Less Provision for Doubtful Debts | -205,854.66 |
BG2 Ltd - Loan Account | 0 |
BG3 Ltd. | 581,701.78 |
BG4 Ltd | 750 |
BMV Finance | 1,582,166.76 |
Crowd Property Loan Account | 215,014.48 |
Dean Powers | 0 |
Deposit - Crown House | 995 |
Elaine Millhouse | 0 |
Hatfield House | 40,205.18 |
Mark Dearing | 0 |
P J Finn | 593,650.84 |
Prepayments | 7,458.86 |
Property Mastermind International | 115,621.62 |
Rent to Buy | 1,569.64 |
Richard Evans | 12,000.00 |
Simon Zutshi - Director’s Loan Account | 793,383.04 |
Sundry Assets | 0 |
The Successful Trader Ltd | -50,000.00 |
Throckley | 170,954.00 |
Vishal Misal | 0 |
Vision1 Investments | 231,314.80 |
Zutshi LLP | 314,202.00 |
Total Current Assets | 4,961,300.83 |
Fixed Assets | |
Computer Equipment | 5,658.24 |
Office Equipment | 70,528.15 |
Less Accumulated Depreciation on Office Equ | -56,877.71 |
Total Fixed Assets | 19,308.68 |
| |
Total Assets | 5,236,829.69 |
| |
Liabilities | |
| |
Current Liabilities | |
Accounts Payable | 42,271.32 |
Accruals | 698,819.40 |
Funding Circle Flexipay | 18,159.19 |
NIC Payable | 14,704.85 |
PAYE Payable | 10,289.80 |
Pensions Payable | 4,398.96 |
Pin Limited | 1,009,493.84 |
Provision for Corporation Tax | 236,374.08 |
Rounding | -1.09 |
Student Loan Deductions Payable | 738.27 |
VAT | 171,739.65 |
Total Current Liabilities | 2,206,988.27 |
| |
Non-Current Liabilities | |
Funding Circle Loan | 276,348.78 |
Lloyds CBIL | 165,000.00 |
Loan | 160,000.00 |
Total Non-Current Liabilities | 601,348.78 |
| |
Total Liabilities | 2,808,337.05 |
| |
Net Assets | 2,428,492.64 |
| |
Equity | |
Capital - x,xxx Ordinary Shares | 2 |
Current Year Earnings | 13,848.94 |
Retained Earnings | 2,414,641.70 |
Total Equity | 2,428,492.64 |
Profit and Loss
Property Investors Network Ltd
For the 12 months ended 31 December 2020
| Dec-20 |
Income | |
Other Revenue | £30.00 |
Sales | £167,139.78 |
Total Income | £167,169.78 |
| |
Less Cost of Sales | |
Advertising & Marketing | £22,092.87 |
Domain Names | £3,047.15 |
IT Engineer | £14,975.00 |
Pin Academy commission | £6,466.98 |
Pin host training | -£266.45 |
Pin meeting commission | £39,071.92 |
Pin Venues | £27,295.98 |
Postage, Freight and Carriage | £178.30 |
Prize Draws | £6,250.50 |
Servers | £784.24 |
Staff/ Hotel/ Travel/ Food | £1,173.12 |
Stage/ Audio/ Filming | £1,992.21 |
Stationery and Workbooks | £11,348.85 |
Text messages | £4,145.41 |
Total Cost of Sales | £138,556.08 |
| |
Gross Profit | £28,613.70 |
| |
Plus Other Income | |
BSPN Commission | £57,000.00 |
Full Power Utilities Commission | £24,140.86 |
Internet Business School Commission | £31,413.31 |
LNPG Commission | £1,058.33 |
Other commission | £65,053.83 |
Preferred Partners | £37,514.13 |
Property Tax Advice Commission | £10,944.25 |
Rethink Academy Commission | £125,860.15 |
Right Plan Commission | £6,237.61 |
YPN Commission | £49,318.58 |
Total Other Income | £408,541.05 |
| |
Less Operating Expenses | |
Audit & Accountancy fees | -£783.00 |
Bank Fees | £542.20 |
Consulting | £34,287.99 |
Corporation Tax | £65,360.00 |
General Expenses | £183.72 |
IT Software and Consumables | £1,221.04 |
Payment System Charges | £6,177.33 |
Pensions Costs | £1,410.26 |
Postage, Freight & Courier | £1,175.25 |
Printing & Stationery | £240.23 |
Rent | £12,073.00 |
Sagepay | £405.00 |
Staff Welfare | £105.48 |
Subscriptions | £41.82 |
Subsistence | £2.55 |
Team Salaries | £28,050.87 |
Telephone & Internet | £205.00 |
Travel - National | £238.31 |
Total Operating Expenses | £150,937.05 |
| |
Net Profit | £286,217.70 |
Profit and Loss
Mastermind Principles Ltd
For the 12 months ended 31 December 2020
| Dec-20 |
Income | |
Closing Work in Progress | -£11,196.96 |
Commission | £89,635.34 |
Interest Income | £5,256.66 |
Sales | £2,690,968.12 |
Sponsorship | £1,666.67 |
Total Income | £2,776,329.83 |
| |
Less Cost of Sales | |
Advertising and Marketing | £42,090.18 |
Amazon Reseller | £465.80 |
Books etc. | £2,811.75 |
Coaching & Mentoring | £178,386.00 |
Commissions | £176,832.10 |
Delegates Kits | £2,680.35 |
Domain Names | £3,469.10 |
Hosts and facilitators | £58,116.87 |
PM Books | £25,600.00 |
Postage, Freight & Courier | £3,560.00 |
Staff/Travel/Hotel/Food | £9,768.89 |
Stage/Audio/Filming | £92,364.54 |
Stationery & Workbooks | £35,031.26 |
Text Messages | £8,856.42 |
Venues | £150,394.20 |
WD Tokens | £1,800.00 |
Webinars | £5,410.00 |
Website Updates | £310.00 |
Total Cost of Sales | £797,947.46 |
| |
Gross Profit | £1,978,382.37 |
| |
Plus Other Income | |
Rental Income | £12,000.00 |
Total Other Income | £12,000.00 |
| |
Less Operating Expenses | |
Audit & Accountancy fees | £4,200.00 |
Bank Fees | £2,809.55 |
Charitable and Political Donations | £724.42 |
Client Gifts | £51.20 |
Consulting | £58,562.56 |
Corporation Tax | £210,000.00 |
Employers National Insurance | £40,887.87 |
Equipment Hire | £3,941.20 |
HR Support | £777.60 |
Insurance | £15,976.72 |
Interest Paid | £58,445.25 |
IT Engineer | £16,575.94 |
Legal Expenses | £3,834.03 |
Marketing IT | £1,040.00 |
Medical Insurance | £5,262.85 |
Miscellaneous Expenses | £4,159.88 |
Payment system charges | £48,003.69 |
Pensions Costs | £12,462.78 |
Premises Expenses | £11,462.81 |
Printing & Stationery | £4,630.79 |
Recruitment Expenses | £253.29 |
Rent | £40,793.26 |
Repairs & Maintenance | £484.20 |
Sagepay | £459.00 |
Shows & Exhibitions | £4,948.75 |
Software and consumables | £27,063.05 |
Staff welfare | £6,965.51 |
Subscriptions | £2,488.08 |
Subsistence | £1,888.98 |
SZ Training | £25,122.04 |
Team Training | £1,817.00 |
Team Wages and Salaries | £457,985.91 |
Telephone & Internet | £13,378.48 |
Travel - National | £2,761.84 |
Total Operating Expenses | £1,090,218.53 |
| |
Net Profit | £900,163.84 |
| PIN | MPL | Total |
Net Profit After Tax | 286,218 | 900,164 | 1,186,382 |
| | | |
Add Backs | | | |
Taxation | 65,360 | 210,000 | 275,360 |
Loan Write Off | - | - | - |
| - | | |
Total Add Backs | 65,360 | 210,000 | 275,360 |
| | | |
Consideration | 351,578 | 1,110,164 | 1,461,742 |