Monto joins backdoor listing trend

West Perth-based explorer Monto Minerals has joined the wave of backdoor listings, with the company announcing plans to acquire a US tech company for $13 million.

Monto plans to buy Silicon Valley-based ShareRoot in exchange for $300,000 in cash and 100 million shares at 10 cents each, totalling $10 million.

Monto will also issue about 52 million performance shares, subject to the achievement of certain milestones.

As part of the acquisition, Monto has engaged Foster Stockbroking to complete an $8 million capital raising at 10 cents a share, in order to comply with ASX relisting rules.

“The company continues to maintain its strategic tenement holding in the Herberton region in Queensland through its wholly owned subsidiaries, and will re-evaluate the projects in the coming months, subject to completion of the acquisition, seeking either a strategic partner or divestment,” Monto said.

ShareRoot has developed an innovative software as a service platform, which enables businesses to efficiently source high-quality social media-derived user-generated content to be used in marketing initiatives and to increase brand awareness.

The platform is live, and is currently working with over 50 brands including Costco, UCLA and Coleman Company.

Monto expects to be relisted on the ASX under its new business model in early November.

Shares in Monto were 33.3 per cent lower to 0.2 cents each at 1:15pm.