Property developer Axiom Properties Ltd has signed a variation to the Heads of Agreement which would give Pivot Group Pty Ltd a 60 per cent stake in Axiom.
The variation increases the subscription price of the share capital to be issued by Axiom under the proposed Pivot transaction from 2 cents to 4c per share. Axiom will now raise $1 million instead of the proposed $500,000.
In addition, the conversion price of the convertible notes to be issued under the proposed Pivot transaction has been increased from 2c to 4c per share (total amount to be raised $4 million) and the exercise price of the share options to be issued under the proposed Pivot transaction has also been increased from 2c to 4c per option (total amount to be raised $5.6 million).
Assuming full conversion of the notes and full exercise of the options, the total amount to be raised under the proposed Pivot transaction has been increased from $5.3 million to $10.6 million.
Under the agreement, Pivot has agreed to appoint three directors to the board of Axiom.
The revised Pivot proposal is subject to shareholder approval at a general meeting to be called in the near future.
One month after the Pivot offer last year, Saramac Nominees launched its own rival bid at twice that of Pivot's original offer, at $10.6 million.
Saramac is a joint venture between developer Luke Saraceni and Macquarie Bank and last year bought a 60 per cent interest in the Port Geographe project.
Axiom listed on the Australian Stock exchange in January 1997.