The Guardian has reported this morning that Coolabi has reached an understanding in principle to be bought by venture capital group North Promotions for £4.2 million.
North Promotions is an investment vehicle owned by Edge Performance VCT. It will pay 7.75p a share for Coolabi. It is also possible there would be a share alternative in North Promotions.
Coolabi shares, meanwhile, sank over 21 per cent on Tuesday after it said half year losses widened and warned there is still much to do in order to realise management's expectations for the full year.
The group said loss before income tax widened to £604,720 for the six months ended June 30th from a loss of £374,030 the year before. Revenue for the period fell to £0.61m from £0.96m.