Minerals Corp brings in CPS for raising

05/10/2015 - 12:19

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Minerals Corporation has appointed CPS Capital Group as lead manager for a $7 million capital raising, as the company works through delays in its acquisition of online music competition business Megastar Millionaire.

Minerals Corp brings in CPS for raising

Minerals Corporation has appointed CPS Capital Group as lead manager for a $7 million capital raising, as the company works through delays in its acquisition of online music competition business Megastar Millionaire.

Minerals Corp is seeking to exit the resources industry by acquiring San Francisco-based Megastar Millionaire in exchange for 75 million shares worth $3 million.

The company hopes to raise at least $4 million and up to $7 million in its 4 cents-per-share public offer, and will pay CPS a 2 per cent management fee of the total funds raised, as well as about 14 million options exercisable at 10 cents each.

“Having received a firm commitment from CPS for the minimum raising under the public offer is a big validation in the Megastar business model, and allows us to actively engage with key stakeholders in the US and globally,” Minerals Corp non-executive director Matthew Foy said.

“We are extremely pleased to have secured the services of CPS as our lead manager.”

The deadline to complete the acquisition conditions has been extended from last Friday to the end of the year.

Megastar is preparing to launch its online, mobile-first music competition, which focuses on paid voting as the primary revenue stream.

The acquisition is Minerals Corp’s second attempt at a backdoor listing, after plans to acquire technology company PRM Cloud Solutions in 2013 were scrapped last year.

Shares in Minerals Corp were 4.6 per cent higher to 6.8 cents at 12pm.

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