West Perth exploration company Leopard Resources has announced an agreement to acquire a Silicon Valley wireless technology business.
As part of the process to acquire G8 Communications Holdings, Leopard plans to raise up to $4 million in capital.
The company will first raise up to $1 million through two $500,000 convertible note issues, convertible at 1 cent a post consolidation share, with the first tranche intended to pay Leopard’s creditors and recompliance costs.
The company then plans to raise a further $3 million through an offer of 150 million post consolidation shares at 2 cents a share.
G8 wholly owns Silicon Valley-based tech firm Connected IO, which has developed the 'Machine Connect modem' machine-to-machine (M2M) device.
Leopard intends to purchase G8 for a total of 200 million post consolidation shares with a nominal value of $4 million.
An additional 150 million shares may be issued to G8’s vendors subject to revenue milestones over the next three years.
The agreement also involves the issue of 90 million post consolidation shares on behalf of G8 to Vuna Capital for the repayment of a loan.
Leopard’s own debt to 708 Capital will be repaid through either the issue of 30 million post consolidation shares, or an issue of 15 million post consolidation shares and $300,000 in cash.
The acquisition is subject to approval of a general meeting of shareholders planned for August 28.
The company plans to complete the acquisition by the end of August, before relisting in mid-September.
