Liberty progresses Cirrus deal

22/04/2015 - 15:27

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Liberty Resources is ticking the remaining boxes on its list of requirements to be met for its proposed acquisition of Cirrus Networks, with an independent expert giving the transaction its stamp of approval today, ahead of a shareholders meeting next month.

Liberty progresses Cirrus deal
Liberty Resources managing director Andrew Haythorpe.

Liberty Resources is ticking the remaining boxes on its list of requirements to be met for its proposed acquisition of Cirrus Networks, with an independent expert giving the transaction its stamp of approval today, ahead of a shareholders meeting next month.

BDO Corporate Finance concluded that the terms of the Andrew Haythorpe-led company’s takeover proposal was both fair and reasonable to its shareholders.

Liberty has also been granted several waivers by the ASX to a number of convoluted conditions it needs to meet in order to re-list on the stock exchange.

It includes lowering the minimum issue price of a capital raising, which Liberty is required to undertake, from 20 cents to 3 cents each to raise a minimum of $3 million.

Liberty said it would issue the 100 million shares at the minimum of 3 cents.

Liberty was also given approval to issue an additional 66.6 million shares (also at 3 cents a share) to raise a further $2 million by way of oversubscriptions.

Liberty announced its intention to move into the IT sector through its acquisition of Cirrus in October last year.

If the deal is approved by shareholders in May, the company will appoint Cirrus chairman Andrew Milner as non-executive chairman, while director Frank Richmond will become managing director and Matthew Sullivan will be a non-executive director.

Daniel Rohr will also join the board as a non-executive director, while existing directors Mr Haythorpe and Charles Thomas will step down.

Shareholders will vote on the takeover proposal on May 22.

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