05/10/2007 - 15:52

Questus seeks backdoor listing through Financial Resources

05/10/2007 - 15:52

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Applecross-based financial services company Questus Capital Group Pty Ltd is seeking a backdoor listing on the Australian Securities Exchange through failed Belmont-based company Financial Resources Ltd.

Applecross-based financial services company Questus Capital Group Pty Ltd is seeking a backdoor listing on the Australian Securities Exchange through failed Belmont-based company Financial Resources Ltd.

FRL, which went into administration earlier this year, will issue 15 million shares at a deemed issue price of 20 cents each, along with 5 million free attaching options exerciseable at 50 cents to Questus, after it consolidates its issued shares and options on a one for 20 basis.

All in all the deal will give Questus a 48.88 per cent stake in the company, with Questus directors David Somerville, Robert Olde and Remo Pollastri appointed to the FRL board.

Under the recapitalisation plan, FRL will also undertake a capital raising through the issue of 17.5 million shares at 20 cents each to raise $3.5 million.

FRL said in its explanatory statement that Questus did not intend to subscribe for shares under the offer in its own right.

FRL, which made its ASX debut in 2003, said it planned to relist solely on its acquisitions, along with stakes in Financial Resources Securities Ltd and Financial Resources WA Ltd, as subsidiaries FRL Contracting and Sovereign Hydrology Ltd are both currently in liquidation.

The company also said that it considered its stake in Quikcard (WA) Pty Ltd as having no value, after its Deed administrator was advised that the now-insolvent company was being moved towards the control of an independent insolvency practicioner.

Questus was established in 2003 by certified practicing accountant David Somerville, and is the holding body for fund manager Questus Fund Management Ltd and investment advisory services company Solon Capital Ltd.

The takeover is subject to FRL shareholder approval, with a general meeting to be held on November 7.

 

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