Sports app seeks listing, Queste out

20/05/2016 - 11:30

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Outgoing migme chairman Howard Dawson plans to become a director of a Singapore-founded fantasy sports company that is seeking an ASX listing through Nevada Iron, as another Perth company backed out of a tech acquisition because of an ASX ruling.

Sports app seeks listing, Queste out

Outgoing migme chairman Howard Dawson plans to become a director of a Singapore-founded fantasy sports company that is seeking an ASX listing through Nevada Iron, as another Perth company backed out of a tech acquisition because of an ASX ruling.

Socialo media company migme, which completed its own backdoor listing nearly two years ago, announced recently that Mr Dawson would resign at the end of this month to meet the demands of his other business interests.

Nevada Iron announced today plans to exit the resources sector through the reverse takeover and backdoor listing of Singaporean company SportsHero, with Mr Dawson to become a director of the business post-acquisition.

SportsHero owns its real-time fantasy sports app and social prediction platform, which predicts game results of sports including soccer, tennis, basketball, cricket and baseball.

It also hosts a social competition platform where top-ranked fans stand to win prizes.

SportsHero is the new incarantion of FootballHero, whch has 250,000 users.

Under the terms of the deal, Nevada will wholly acquire SportsHero in exchange for 70 million pre-consolidation shares at 1.5 cents a share, valuing the deal at $1.05 million.

Nevada will also issue 70 million options as part of the acquisition.

In order for the deal to be successful, Nevada will be required to complete a minimum $2.5 million capital raising at 2 cents per share to comply with ASX relisting rules.

If the deal is successful, all Nevada board members, except for chairman Mick McMullen, will resign and be replaced with Mr Dawson and Christopher Green.

“The transaction provides Nevada with a viable funding route to achieve shareholder value and with the proposed transaction structure that caps the maximum dilution to existing shareholders,” Mr McMullen said.

The company hopes to be reinstated on the ASX by September.

Nevada shares last traded at 1.1 cent each on May 10.

Meanwhile, Queste Communications disclosed today it had wanted to undertake the acquisition of a technology company in return for new Queste shares, accompanied by the injection of cash into Quests by the vendor company.

The Farooq Khan-chaired company said it would only proceed if it did not have to recomply with Chapters 1 and 2 of the ASX listing rules, as normally occurs with a backdoor listing.

Quests had argued that it listed on the ASX in 1998 as a technology company, with a focus on internet telephony, and while it had not been active in that field it was still a technology company.

The ASX formally advised today that Queste would be required to recomply with chapters 1 and 2, and therefore Queste said it would not proceed with the planned transaction.

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