23/04/2015 - 14:58

Resource Star plans backdoor listing

23/04/2015 - 14:58

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Exploration firm Resource Star has announced plans to acquire a 60 per cent interest in a Chinese company which holds an exclusive licence to produce and distribute Candy Crush confectionery in Asia.

Resource Star plans backdoor listing

Exploration firm Resource Star has announced plans to acquire a 60 per cent interest in a Chinese company which holds an exclusive licence to produce and distribute Candy Crush confectionery (pictured above) in Asia.

Resource Star's target, Sugar Dragon, is able to distribute the confectionary in China through its 72.5 per cent owned manufacturing and distribution company Okmno Asia.

The deal is worth $4 million.

It is Resource Star’s second attempt at undertaking a backdoor listing, after a plan to acquire Perth technology business Cloud Lands Digital Fortress was cancelled in February.

“The investment into Okmno Asia strategically positions the company in the Asian market with outstanding business partners and brings material revenue,” Resource Star said in a statement.

Because the transaction will significantly change the nature and scale of Resource Star’s business model, it will be required to complete a $4 million capital raising at an offer price of no less than 2 cents a share, in order to comply with ASX relisting rules.

Resource Star also intends to undertake a small capital raising by way of a $200,000 placement, through the issue of 100 million shares at 0.2 cents each, to provide working capital to the company between now and completion of the transaction.

Resource Star expects to be reinstated to the ASX on August 12.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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