In a shock turn around, ASX listed bandwidth wholesaler FlowCom has announced its intended purchase of the company would not go ahead, paving the way for the sale of Froggy Holdings to mystery man Tim Berry.
Despite lodging a deposit for the purchase of the company on January 21, FlowCom this morning confirmed it would not go ahead with the purchase with the deposit picked up by Berry.
The deal is designed to enable FlowCom to ensure the AU$4 million bandwidth provision contract with Froggy Holdings survives the liquidation process.
In a statement to the press, FlowCom CEO Tom Amos described Berry as a new, strong partner, and announced an extension of the service contract held with Froggy Holdings.
In the same statement Berry announced his intention to increase the range and penetration of the Froggy ISP business, and forcast the ISP's entry into high-speed Internet provision.
While the sale has yet to be finalised the market has reacted well to the initial announcement regarding FlowCom's intended purchase, with the company share price rising to its highest level in four months.
