Perth technology entrepreneur Zhenya Tsvetnenko is taking another of his ventures public with a second reverse takeover of a struggling mining stock in four months.
Mr Tsvetnenko’s Mpire Media is to be listed on the ASX through a reverse takeover of Lithex Resources - a graphite-focused exploration company.
It follows digitalBTC’s reverse takeover of Macro Energy in March, of which digitalBTC founder Mr Tsvetnenko became chair.
Mr Tsvetnenko founded Mpire Media in 2006 as an outcomes-focused advertising agency.
The binding heads of agreement for Lithex’s acquisition of the operating company of Mpire - Livelynk Group - is dependent on the company raising $3.5 million through a share placement priced at 20 cents per share.
A rights issue and offer to sophisticated investors will also be undertaken with shares priced at 2 cents per share.
News of the reverse takeover plan prompted the value of Lithex stocks to rise 135 per cent from 1.7 cents per share to 4 cents per share at 9:15 WST.
Mpire chief executive Luke Taylor said spinning Mpire out of the Zhenya Group of companies and into the public domain would capitalise on strong commercial opportunities driven by the growth on performance-based advertising.
Lithex chairman Jason Peterson said the acquisition of Mpire gave Lithex an opportunity to transform the company’s strategy and potential for future growth.
“We are certain that this transaction will deliver an outcome that far better maximises shareholder returns compared to our current position,” he said.
In May, telecommunications firm ZipTel signed a marketing deal with Mpire to promote the former’s ZipT smartphone application in more than 120 countries.
