Takeovers and mergers | AACL and Moboom
At this price $0.020 its as a speculative buy with the moboom backdoor listing , worth a look if you follow the technology sector specifically with website development. I would give it a 50/50 chance of making some money in their next profit reporting season
AACL with Moboom Backdoor listing
What is a back door listing?
A back door listing, sometimes referred to as a reverse takeover, reverse merger, or reverse IPO, occurs when a privately-held company that may not qualify for the public offering process purchases a publicly-traded company.
What does Moboom do ?
Moboom is a technology company that has developed proprietary technology to enable the creation of responsive websites that work on any device from mobile phones through to tablets like ipads and and PCs. The company has already several leading Australian and Asian publishers and media groups as customers and is planning expansion into European and US markets in coming months. The company is headquartered in Perth, Australia and has a development office in San Francisco, USA.
Negatives for Moboom
Most other website or website theme providers have caught on already with the new wave of eyeballs coming to their websites from smartphones and tablets and there are many players in the website market who are providing this product at competitive price , however moboom also has the advantage of providing extras wit their product that is well integrated in one package like ( Integrated Google Analytics, social ( FACEBOOK , Twitter etc) integration , and Unlimited bandwidth )
Press release from AACL
UNON-BINDING HEADS OF AGREEMENT EXECUTED WITH MOBOOM LIMITED (MOBOOM) AACL Holdings Limited (AACL) is pleased to announce that it has executed a non-binding Heads of Agreement with mobile web developer and mobile solution provider Moboom, that sets out a proposed acquisition by AACL of all of the issued shares in Moboom, in consideration for the issue of AACL ordinary shares to Moboom shareholders (Proposed Transaction). The Heads of Agreement is non-binding, incomplete and indicative, except in respect of confidentiality obligations. The Proposed Transaction will include an equity raising for the purposes of funding the working capital requirements of the enlarged entity.
The parties have agreed to use their best endeavours to finalise the structure of the proposed acquisition and execute definitive transaction documents by 20 May 2013, and complete the Proposed Transaction by early August 2013. On completion of the Proposed Transaction, AACL will change its name to “Moboom Limited”.
As reported from AACL website
“As reported to the ASX, AACL Holdings Limited sold its main operating business to Glencore for approximately A$8.5M with settlement on the 15th October 2012.
The board is now looking for a transactions/business to vend into AACL to maximise shareholder wealth.”
This proposed “backdoor listing” falls under the change of activities as reported to ASX and proposed Transaction will result in AACL requiring shareholder approval under Chapter 11 for a change in the nature and scale of its operations and will require AACL to re-comply with Chapters 1 and 2 of the ASX