New Revenue Share Agreement

 

TIDMCMM 
 
RNS Number : 2852E 
Commoditrade Inc. 
17 December 2009 
 

17 December 2009 
Commoditrade Inc. 
("Commoditrade" or "the Company") 
 
 
New Revenue Share Agreement 
Commoditrade Inc. (AIM ticker: CMM), the commodities investment group, is 
pleased to announce that it has entered into new terms under its revenue share 
agreement ("Agreement") 
with Sucden Financial Ltd ("Sucden") in relation to 
the LME floor trading operations. The details of the agreement are: 
  *  A fixed annual fee of GBP7.5 million under the previous agreement has been 
  reduced to GBP4.25 million per annum for the first year and GBP3.25 million per 
  annum thereafter; 
  *  Following the deduction of all costs including the aforementioned fixed 
  fee, Sucden is will also receive 25% of net revenue. 
  *  The agreement has been backdated and is effective from 1 September 2009, running 
  on a 12 month rolling basis. 
 
Commenting, David Phipps, Chief Executive of Commoditrade, said: 
"The new revenue share agreement will immediately enhance our potential 
operating profitability. 
 This new agreement allows Commoditrade to reduce 
its fixed costs and in return provides Sucden with a share of higher net 
revenues." 
Michael Overlander, Chief Executive of Sucden Financial Limited, commented: 
"Sucden Financial's LME operation is a key component of our business. I am 
therefore pleased 
that we have concluded our discussions with Commoditrade 
and look forward to further developing and strengthening our presence in the 
metals market." 
+---------------------------------------------+---------------------------+ 
|   Enquiries:                                |   www.commoditrade.net    | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
|   Commoditrade Inc, David Phipps, Chief     |   tel: [phone] | 
|   Executive                                 |                           | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
|   Nomad - Strand Hanson                     |   tel: [phone] | 
|   James Harris/Angela Peace                 |                           | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
|   Broker - Liberum Capital                  |   tel: [phone] | 
|   Chris Bowman/Ellen Francis                |                           | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
|   Media/IR enquiries for Commoditrade       |   tel: [phone]     | 
|   Hansard Group                             |   1100                    | 
|   John Bick/Justine James                   |   tel: [phone] | 
|                                             |                           | 
+---------------------------------------------+---------------------------+ 
|   Media enquiries for Sucden Financial      |   tel: [phone]     | 
|   Limited                                   |   5280                    | 
|   Tariq Ahmad                               |                           | 
+---------------------------------------------+---------------------------+ 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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