A Subiaco-based piping company led by businessman Andrew Haythorpe has announced plans to buy a New Zealand tech company, in a backdoor listing worth about $5.5 million.
VTX Holdings is proposing to buy NexGen Networks and become a software technology company, in exchange for 240 million ordinary shares and 160 million performance shares, which are subject to the satisfaction of certain milestones.
VTX will also be required to complete a capital raising at no less than 2 cents a share in order to comply with ASX relisting rules, but it is yet to determine the size of the raising.
If the deal is successful, the board of the new company will comprise Jason Gitmans as managing director, Robert Pole as technical director, and Keaton Wallace as corporate director.
Mr Haythorpe will retain his role as chairman.
The company plans to be trading under its new business model on December 31.
NexGen has developed its Warpware software, which delivers customised algorithms that enables recreation and optimisation of data flow between two geographical points in the world.
It effectively allows bigger packets of already-compressed data to be sent more effectively, facilitating faster speeds on existing hardware.
Mr Haythorpe has been involved in a number of junior company turnarounds, including Liberty Resources which is currently involved in a reverse takeover of Cirrus Networks.
Mr Wallace is also executive director of Perth-based telecommunications business ZipTel, which listed on the ASX last year through a reverse takeover of Skywards.
VTX shares have been suspended from trade since June 11, and last closed at 2.3 cents.
