Hackett joins White Star raising

Subiaco-based White Star Resources, which is in the process of acquiring a technology business, will seek shareholder approval to increase its previously announced capital raising to $5 million, to accommodate a new prominent cornerstone investor.

The company has received a commitment from technology entrepreneur Simon Hackett to invest as part of the capital raising, supporting the company’s decision to acquire geospacial imagery companies Spookfish and Geospatial Investments.

Mr Hackett will join previously announced Perth-based cornerstone investors to the placement, Amcom Telecommunications chairman Anthony Grist, marketing entrepreneur Brent Stewart, and Hoperidge Capital, the family office of Rod Jones, co-founder and managing director of ASX-listed education provider Navitas.

White Star initially announced a 3.5 cents per share $4 million placement late last month, under lead management of Forrest Capital, at the same time as announcing it had exercised its option to acquire Spookfish and Geospatial Investments.

White Star entered into a conditional agreement to acquire Spookfish in June, and finalised the deal in August when it bought a 12.5 per cent interest in the company for $1 million cash.

The company will seek shareholder approval at a general meeting next month for the $5 million capital raising, and if approved along with all other resolution, will change its company name to Spookfish Limited.

It will also put forward a resolution to shareholders to significantly change the scale and nature of its activities, under which it will officially move away from mining and mineral exploration to geospatial imagery activities.

White Star executive director Jason Marinko said in an announcement to the ASX that the $4 million already committed was sufficient for the company’s immediate needs.

“However, Simon Hackett has vast experience in the technology sector and can add significant value to Spookfish as it evolves to become a major player in the global geospatial industry,” he said.

Mr Hackett founded Internode in 1991 and, after building it into Australia’s largest privately-owned broadband company, sold it to iiNet in 2011.

He joined the board of iiNet as a non-executive director until resigning in 2013, when he became a non-executive director of the government-owned NBN Co.

The company said the additional funds from the increased placement will contribute to the development of the phase two high altitude commercial offering in 2015.

White Star shares remained unchanged today, trading at 4.8 cents at 12.15pm WST.