Volt makes $6m acquisitions

18/12/2017 - 14:40

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Volt Power Group has announced it will purchase a stake in two Western Australian mining services businesses for more than $6 million, while also raising $4.75 million through a share placement.

Volt makes $6m acquisitions
Wescone's sample crusher was originally developed for the WA iron ore industry and is used throughout the operations of BHP and Rio Tinto.

Volt Power Group has announced it will purchase a stake in two Western Australian mining services businesses for more than $6 million, while also raising $4.75 million through a share placement.

Henderson-based Volt will acquire Wescone, which manufactures and supplies sample crushing equipment, and take a 50 per cent stake in EcoQuip, which supplies mobile solar and battery powered lighting towers.

Wescone, founded by Perth businessman Kim Ledger, is primarily focused on the supply and maintenance of its electrically powered W300 sample crusher.

Under the Wescone agreement Volt will pay $4.75 million in cash while also issuing $250,000 worth of shares in the company.

There are also a set of royalty arrangements within the deal.

The agreement is subject to a number of conditions including shareholder approval and completion of the capital raising.

Mr Ledger will remain as an executive director at Wescone.

Under the EcoQuip deal Volt will issue founder and general manager David Sharp $150,000 worth of shares and pay $1 million to EcoQuip.

Mr Sharp will continue as general manager and shareholder approval is not required.

Volt chief executive Adam Boyd said the two purchases would transition the company’s cash flow and allow for the continued development of its flagship ATEN technology.

“The combination of these acquisitions will transform our company into a cashflow generating supplier of innovative equipment solutions whilst at the same time improve the capacity of the business to deliver on the significant opportunity to commercialise and roll-out our ATEN technology ‘waste heat to power’ solution,” he said

“Both acquisitions are aligned with the company strategy of creating shareholder value through the expansion of our power generation and infrastructure-type equipment footprint in resource sector markets.

“Wescone and EcoQuip are both proprietary owners of innovative, ‘in house’ developed equipment solutions successfully servicing the resources sector.”

Meanwhile the company also announced it would raise $4.75 million via the issue of 1.9 billion shares at an issue price of 0.25 cents each.

Funds from the raising will be used fund the Wescone acquisition and for working capital to continue the commercialisation of ATEN.

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