Hygrovest (ASX:HGV) has entered into an agreement to divest its shares in Emerging Therapeutics Group.
The investment company, which focuses on medium-term capital growth, announced the divestment as part of its broader strategic shift.
The agreed consideration for the sale includes an initial cash payment of $3.5 million, payable on Sept. 25, followed by an additional $300,000 payable 18 months later.
Although the total sale price represents a small discount to Hygrovest's $4 million carrying value, it is significantly higher than the circa $700,000 acquisition cost of the shares.
"The sale of Hygrovest's investment in ETG is an important further step in the transition of HGV's portfolio from one concentrating on cannabis investments to one that is broader and more liquid" said Warwick Sauer, Hygrovest's chair.
The negotiations for this divestment were managed by HD Capital Partners, the company's asset manager.
The sale aligns with Hygrovest's ongoing efforts to reconfigure its investment portfolio to increase liquidity and diversification.
Hygrovest remains committed to its strategy of producing capital growth for shareholders through investments in both listed and unlisted equities and debt securities.
Hygrovest is an specialist investment company that concentrates on producing capital growth for shareholders over the medium term from investments in listed and unlisted equities and debt securities.
At the time of reporting, Hygrovest's share price was $0.045.