Acquisition

    RNS Number : 2436J
  Commoditrade Inc.
  01 December 2008
   

    1 December 2008
    Commoditrade Inc.
    ("Commoditrade" or "the Company")
    Acquisition of Commodities Fund Management Business
    Commoditrade Inc. (AIM: CMM), the commodities investment group, today announces the acquisition from Keiron Mathias and Chris Adams
("Sellers") of the entire issued share capital of AMCO Management Services Limited ("AMSL"), the controlling partner of AMCO Commodities LLP
("AMCO"), a commodities fund manager, for a total cash consideration of £4 million, to be satisfied as to £2 million on completion and the
balance payable in 4 equal instalments of £500,000 in the course of the following 15 months. Each instalment will, however, only be paid if
the assets under management of AMCO at the relevant payment date are no less than US$150 million. 
    Commoditrade currently enjoys the benefit of a profit share arrangement with AMCO, pursuant to which it is entitled to 75 per cent. of
the annual net profits of AMCO. The acquisition of AMSL represents the final step in securing access to the entire business of AMCO and, as
a consequence, this profit share arrangement will terminate on completion.

AMCO commenced trading in May 2006 and it now has in excess of US$100 million of assets under management dedicated to an investment strategy
in the base metals market.  AMCO achieved audited revenues of £1.6 million and operating profit (before payments to Commoditrade pursuant to
the revenue share) of £966,000  in the financial year ended 30 November 2007. Net assets at that date were £785,000.  Completion of the
transaction is subject to approval from the FSA. Since its launch the AMCO Fund has achieved a cumulative return of over 25 per cent.

    Chris Adams, one of the Sellers, is a Director of Commoditrade. Accordingly, the acquisition is deemed to be a related party transaction
under the AIM Rules.  The Independent Directors of Commoditrade (being those Directors other than Mr Adams), having consulted with Strand
Partners Limited, the Company's nominated adviser, consider the terms of the acquisition to be fair and reasonable so far as its
shareholders are concerned. Strand Partners Limited has taken into account the Independent Directors' commercial assessments of the
acquisition.

    Commenting, David Phipps, Chief Executive Officer, Commoditrade Inc. said

    "We have had a very good working relationship with the AMCO team for two years and the acquisition of AMCO makes for an excellent fit
with our previously announced strategy to diversify our product range and commodity coverage to broaden our revenue streams.

    "The AMCO Fund has delivered excellent performance since it was launched in 2006 and we are very pleased that the AMCO team have agreed
to join Commoditrade which will help maintain the continuity and future development of the business.  At the same time this acquisition
solidifies and enhances Commoditrade's bespoke offering to investors in the base metals market place and delivers another stream of earnings
into the group."

    Enquiries:

    David Phipps, CEO
    Commoditrade Inc                tel: [phone]

    James Harris / Angela Peace 
    Strand Partners Limited        tel: [phone]

    John Bick, Hansard Group    tel: [phone]
    www.commoditrade.net
    Notes to editors:

    Commoditrade (AIM ticker; CMM.L) was listed on AIM in 2005 as a commodities investment company and derives its revenues primarily from
broking and trading in the international base metals market.

    ends

This information is provided by RNS
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