MUSTANG Group will change identity again this October if an agreement to acquire The Metabolism Centre goes its way.
Shareholders of the listed Mustang will vote on the plan and the name change, to Metabolic Diagnostics, at the company’s annual general meeting on September 10.
However, with major shareholders backing the move for The Metabolism Centre’s backdoor listing, the go-ahead is considered a formality, and the indicative timetable also nominates September 10 as the prospectus lodgement date.
Mustang, formerly Timemac Solutions, was taken over by the current board – executive chairman Mark Savage and directors Mark Pearce and Cale Carson – in July last year.
But when The Metabolism Centre reverse takeover is settled, Messrs Carson and Pearce will resign from the board and Mr Savage will become an acting non-executive chairman.
The Metabolism Centre managing director James (Jim) Cowling will become Metabolic Diagnostics managing director, The Metabolism Centre founder David John will be technical director, and Joseph Ohayon finance director.
Messrs Cowling and Ohayon joined Mr John at The Metabolism Centre in June 2002.
Under the conditional plans, Mustang Group will pay 200 million shares, plus two tranches of 100,000 converting preference shares, pending EBITDA achievements for the 2003-04 and 2004-05 financial years.
Siafu Securities will also receive 200 million shares at 0.4 cents each, pursuant to a prospectus.
The Metabolism Centre was established in 1998 in Subiaco to assist athletes improve performance, but since October last year the company has set up 11 new sites and an administration and call centre to diagnose metabolic disorders for a variety of clients.
It is now aiming to open 50 clinics throughout Australia by the end of next year to build on monthly revenue that reached $400,000 in May. The listing will raise further expansion funding with the help of Argonaut Capital.
The company is targeting 8 per cent of the growing weight loss market within the next two years, and has included the US, UK, Western Europe and Asia in its sights.
However, it is keen to point out metabolic disorders are also with diabetes, thyroid dysfunction and high cholesterol and triglycerides.
As with other weight loss companies, The Metabolism Centre has recruited high-profile names to endorse its activities – West Australian sporting identities Damien Martyn and Shane Gould.
Mustang Group, which retains interests in software and biotech company Biovend, has been trading at around $0.004.
The group’s major shareholders are Mr Savage, Mr Pearce, Ian Middlemas and Daniel Wise.
© Business News 2017. You may share content using the tools provided but do not copy and redistribute.