Victory Mines in reverse takeover

Perth-based Victory Mines has announced plans to exit resources through the acquisition of an Israeli-incorporated technology company for about $2.7 million.

Victory Mines plans to acquire Milestone Sports, which is developing low-cost wearable sensor technology together with data analytics for the US sports industry.

The company’s wearable marketing platform, a data-collecting sensor called ‘MilestonePod’ is worn on a consumer’s shoe and wirelessly syncs to a mobile device, feeding live data results.

Under the terms of the acquisition, Victory Mines will issue Milestone 332.7 million shares which, at the company’s opening price of 0.8 cents each, is equal to about $2.7 million, as well as 332.7 million performance shares.

Victory Mines will also be required to complete a minimum $3.5 million capital raising at 2 cent each, in order to comply with ASX re-listing rules.

If the deal is successful, Victory Mines will dispose of all of its current assets, change its name to ‘Milestone Sport’ and re-list on the ASX under the target’s business model.

All but two existing Victory Mines directors will remain on the board, while Milestone Sport will have the right to appoint three nominees of its choosing.

The company expects to be re-instated on the ASX by August 5.

Victory Mines shares closed 25 per cent lower to 0.6 cents each.