WH Ireland Group has signed an agreement for the conditional sale of its Wealth Management division to Oberon Investments for £1m ($1.3m) in cash, with Oberon taking on specified contractual liabilities.

The group said the business remains loss-making despite additional cost reductions and would need significant investment to become profit-generating.

WH Ireland added that any capital raising to support such investment would be highly dilutive and described the disposal as the most viable option for stakeholders.

Oberon is the investment management arm of Oberon Investments Group, a London-based firm offering wealth planning and corporate broking services.

Earlier this month, Oberon disclosed it was in advanced talks to buy the Wealth Management division of an undisclosed firm in the UK via an asset purchase agreement that would add about £850m of assets under administration.

The transaction comes after WH Ireland sold its Capital Markets division in July.

The company intends to apply to delist from AIM and to commence the process of winding down its operations.

It expects to publish its 2025 financial results this week and has said that, on review, the costs of remaining admitted to AIM outweigh the benefits.

A general meeting to consider the sale and the proposed AIM cancellation is scheduled for 9 October.

WH Ireland non-executive chair Simon Moore said: “The sale of WH Ireland Wealth Management is, in the board’s view, the most appropriate outcome for the business and its stakeholders.

“Following the disposal of its operating businesses, the company proposes to delist from AIM and intends to implement a wind-down of the group via a liquidation, with any resulting distributable reserves being returned to shareholders at its conclusion.”