Antilles Oil and Gas has announced plans to acquire aged care technology company HomeStay Care, which counts Fastbrick Robotics chair Shannon Robinson among its directors.
Under the proposal, Antilles will issue 300 million shares to HomeStay, along with 200 million performance shares, with the company’s shares last changing hands at 2.1 cents each.
At this price, the deal is valued at $6.3 million.
As part of the acquisition, Antilles will complete a capital raising of at least $2.5 million.
After the acquisition is completed, Antilles will be renamed HomeStay Care Limited.
708 Capital is acting as lead manager while Edwards Mac Scovell is legal adviser.
HomeStay, which was founded in 2016, provides technology enabled care to the aged care industry through its proprietary internet of things platform.
The technology offers on-demand care services, healthcare data management and lifestyle monitoring.
HomeStay has pilot programs under way for up to 750 homes in Australia and Singapore to test the technology.
"The company considers that the acquisition represents an exciting opportunity for shareholders, with the recently released federal budget including funding to support Australians who wish to receive care at home through the government providing $1.6 billion to support 14,000 additional high level home care packages by 2021–22," Antilles said in a statement to the ASX.
Following completion of the deal, Antilles will appoint Ms Robinson and Edwards Mac Scovell partner Sara Kelly to its board.
Ms Robinson currently chairs local tech company Fastbrick Robotics and is on the board of ASX-listed companies Yojee and Spookfish.
Current directors Ranko Matic and David Wheeler will resign.
Under the deal, Antilles will consolidate its stock to 135 million shares.
Antilles has also paid an exclusivity fee of $100,000.
HomeStay has granted Antilles an option to undertake due diligence, which is exercisable by Antilles making a $300,000 interest-free loan to HomeStay.
The deal is subject to a number of conditons, including shareholder and regulatory approval.
