The project went through several phases with the aim to acquire equity in the first ever e-service app (like Google Play and Apple App Store) for purchasing commuting tickets in Bulgaria. The first phase comprised of drafting and negotiating a MoU between the founders, the angel investor and the prospective buyer who we were representing in the deal. While acting as legal counsellors of the buyer, we performed full due diligence of the project to evaluate any potential risks associated with the ownership of the app and the share capital. Our team verified that the app software had all licenses required for the use of any software belonging to third parties that was used in the process. The second phase involved the negotiations of the structure of the deal, e.g. take-over of the debt towards the angel investor, which provided seed capital at the early stage of the start-up. The last phase was signing of share purchase agreement for acquisition of 23,3% of the shares and shareholders agreement.
Our client intends to play a leading role in the business development of the platform and its geographical expansion in various Bulgarian cities. The project is important because it is the first of its kind on the Bulgarian market. Moreover, the intentions of the buyer involve not only share acquisition but to also to make the business working and to expand it within the borders of the country and internationally. The nature of such long-term investment will greatly contribute to the public and private sectors dealing with the commute of passengers.