22/12/2010 - 09:16

Backdoor listing triples MOD value

22/12/2010 - 09:16

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Shares in Simon Lee-chaired Medical Corporaion Australia (MOD) have almost trebled in value this morning after the company announced it will assist Miles Kennedy's resources explorer Amphion International with a back door listing.

Backdoor listing triples MOD value

Shares in Simon Lee-chaired Medical Corporaion Australia (MOD) have more than trebled in value this morning after the company announced it will assist Miles Kennedy's resources explorer Amphion International with a back door listing.

MOD shares ended the day up 342 per cent, or 13 cents, to 15.5c after the announcement it will acquire Amphion.

In a statement, the company said the deal was also finanically backed by Twiggy Forrest, James Packer and Tim Roberts.

MOD will offer $2.8 million worth of shares to MOD's investors to secure the deal, and will end up with around $12 million in assets.

The placement will comprise the issue of up to 80 million MOD shares at 3.5 cents per share.

Subject to shareholder approval, the transaction will see Mr Kennedy and fellow Amphion director and shareholder, Mark Drummond, join the MOD board.

Amphion is assessing resources investment opportunities in Australia and overseas.

Mr Kennedy was the founding chairman of gold miner Macreas Mining and Kimberley Diamond, the latter of which was taken over by Gem Diamonds in 2007 for $320 million.

More recently, Mr Kennedy was the chairman of Sandfire Resources and remains chairman of explorer Resource & Investment.

Mr Drummond is a former business journalist who left the media in 2008 to take part in the restructuring and recapitalisation of Amphion.

The deal remains subject to the approval of MOD shareholders at a general meeting expected to be held in early February. The notice of general meeting and explanatory statement are expected to be dispatched to MOD shareholders shortly.

MOD chairman Mr Lee, whose successful track record in the resources industry has included building gold mining companies, Great Victoria Gold, Samantha Gold and Equigold, said the Amphion transaction would deliver MOD the skills and financial backing to capitalise on investment opportunities in the resources sector.

"We are confident that Mr Kennedy and his team will continue their exceptional track record of generating significant shareholder value by identifying investment opportunities." said Mr Lee.

Mr Kennedy said he looked forward to helping identify a suitable resources project for MOD to invest in.

"Having a treasury of about $12 million, post the placement, certainly leaves us well placed financially to pursue those plans," said Mr Kennedy.

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