02/10/2014 - 15:07

Lithex appoints Shaw in $10m raising

02/10/2014 - 15:07

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Final steps are underway for Perth-based global marketing venture Mpire Media’s reverse takeover of Lithex Resources, with the junior explorer appointing Shaw Stockbroking as lead manager to its $10 million capital raising.

Zhenya Tsvetneko.

Final steps are underway for Perth-based global marketing venture Mpire Media’s reverse takeover of Lithex Resources, with the junior explorer appointing Shaw Stockbroking as lead manager to its $10 million capital raising.

Lithex announced on September 30 it had entered into a share purchase and sale agreement to acquire Livelynk Group Pty Ltd, the operator of Mpire Media, following the heads of agreement announcement in July.

The agreement is conditional upon Lithex raising a minimum of $7 million and a maximum of $10 million through the issue of up to 50 million shares at 20 cents each, on a post consolidation basis subject to shareholder approval.

The capital raising is part of the financing package attached to the acquisition, which also required Lithex to undertake a placement to raise $283,000 and a rights issue to raise $542,000, which have both been completed.

Lithex also agreed to provide a secured loan of up to $1.2 million to Livelynk to fund initial growth following the completion of the earlier placement and rights issue.

Lithex chairman Jason Peterson cited the new direction for the company that will see it move into the online marketing sector.

“The appointment of Shaw Stockbroking brings the company one step closer to being transformed into an internet services company which will provide shareholders with the opportunity to realise significant future value upon the back of an exciting and growing business sector,” he said.

The deal represents the third reverse takeover of a mining company by Perth technology entrepreneur Zhenya Tsvetnenko this year.

Mr Tsvetnenko’s digitalBTC undertook a reverse takeover of Macro Energy in March and ZipTel also went public with a backdoor listing through another former minerals explorer, Skywards.

Lithex shares closed the day’s trade at 2.8 cents.

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