SSL, Bluedot founder wrangle over share sale

SSL Venture Capital Jamaica Limited, which controlled 50 per cent of data insight firm Bluedot Data Intelligence Limited for two years before agreeing to sell back its stake to founder Larren Peart, says it’s still to be fully compensated for the shares despite an extension of the deadline.

But the venture capital company which trades as SSL Ventures is also saying it has no intention of retaining interest in Bluedot, and is prepared to sell the shares to others if payment is not forthcoming from Peart.

Neither the amounts paid over by Peart to date, the outstanding amounts owed, nor the value of the transaction agreed to by the parties back in April 2020 were disclosed. Bluedot had a valuation of US$1.6 million at the time of signing.

The deal was scheduled to close at the end of June 2021 upon finalisation of all payments and the transfer of shares. But in a notice posted on the stock exchange late Sunday, SSL Ventures advised that Peart, the purchaser, was in breach of the contract and the issue had become a legal matter.

“We sold the shares to Bluedot and they were to pay within a certain time, but the payment date was missed. They were given an extension and also missed that too, and so that was what triggered the clause in it to rescind. They may challenge it legally, and if they do that, we can contest it in court,” CEO of SSL Ventures Anthony Dunn told the Financial Gleaner.

Peart said he had no comment on the matter but confirmed that his lawyers were in discussion with SSL Ventures.

The companies are attempting to iron out the issue outside of court, but Dunn told the Financial Gleaner that SSL Ventures is prepared to take the matter before a judge if the monies owing to the company are not settled by the end of SSL’s next quarter – that is, around December.

“We just need to get paid and I don’t see it taking too long. If they want to go and arbitrate, that’s also a possibility. At this time we await the feedback of our lawyers as to the next steps, but our lawyers were advised to enforce the agreement as it is,” Dunn said.

“If he can’t come up with the money within a reasonable time, which certainly has to be before the end of the next quarter, and if there is a willing buyer, we would be willing to sell to them …We wouldn’t want to take back over those shares and hold them for any period of time,” he said.

Restructured as a venture capital firm from a reverse takeover of failed music publishing outfit C2W Music Limited in 2018, SSL Ventures immediately acquired three marketing start-ups – Bar Central, Bluedot and Muse 360 Integrated in August 2018.

Muse 360, which offered marketing and commercial solutions and was held 51 per cent by SSL, was closed down in August 2019.

SSL Ventures closed its April-June quarter with no active operating portfolio company, having ceased operation of Bar Central in December 2020, in which it held 75 per cent interest. But it made a profit of $64 million, largely attributable to non-core activities which pulled in $71 million for the company. The $14 million of revenue recorded for the period related to Bar Central.

The gains in the quarter served to narrow SSL Ventures annual losses for year ending June 2021 to $321,359. Losses at year ending June 2020 amounted to $153 million.

SSL Ventures is basically operating as a shell company, the future of which the board and management are still deliberating, Dunn said.

karena.bennett@gleanerjm.com