After plans for a backdoor listing fell through in 2014, former New Tel boss Peter Malone has signed up Patersons Securities as lead manager for a $4 million initial public offering for his sunscreen and cosmetics company Skin Elements.
After plans for a backdoor listing fell through in 2014, former New Tel boss Peter Malone has signed up Patersons Securities as lead manager for a $4 million initial public offering for his sunscreen and cosmetics company Skin Elements.
Skin Elements, which is steered by Mr Malone and corporate adviser Luke Martino, is offering investors up to 20 million shares at an issue price of 20 cents each to raise $4 million, with oversubscriptions up to a further 2.5 million shares to raise a further $500,000.
The offer has not been underwritten.
Indian Ocean Group, which is run by Mr Martino and his brother Domenic Martino, is acting as corporate adviser to Skin Elements.
Skin Elements is a developer of natural skin care technology and formulae, and holds a portfolio of skin care products including Soleo Organics natural sunscreen and the Elizabeth Jane Natural Cosmetics brands.
Mr Malone, who chairs the company, said Skin Elements aspires to become a significant national and international participant in an increasingly health conscious consumer market.
“The company is currently in the final stages of market testing Soleo Organics in Australia and internationally which is showing consistent positive market feedback,” he said.
“At this stage of the company’s development, Skin Elements is seeking funding for the market launch and expansive marketing and product development of Soleo Organics and future product development, including its natural cosmetics range under the EJNC brand.”
Skin Elements will apply for listing on the ASX next week.
In 2014, the company entered into negotiations for a reverse takeover of ASX-listed Minrex Resources in a deal valued at $7.4 million, however the deal was terminated later that year after Minrex shareholders voted against the transaction.
Minrex has subsequently proceeded with a backdoor listing deal involving Sydney-based Hello Real Estate in a deal valued at $6.75 million.
The Skin Elements prospectus states that Mr Malone has over 30 years' business experience, been responsible for raising $100 million for technology companies and has a "proven track record in managing technology development programs".
He made headlines more than a decade ago when he was chief executive of telco New Tel, which went into administration in 2002.
Domenic Martino was also embroiled in the New Tel ordeal and left the company’s board just months before its financial position unravelled.
Skin Elements is the second tech-focused backdoor listing involving the Martino family.
Domenic Martino-chaired Synergy Plus plans to acquire Perth-based online gaming business VGW Holdings for $48.9 million and raise about $3.5 million.
Domenic Martino’s son, Christopher Martino, is also a director of Synergy Plus.
