A custom mouthguards maker that boasts AFL coach John Worsfold as a director has announced plans to list on the ASX through the reverse takeover of Perth-based explorer Mount Magnet South.
Mt Magnet plans to exit the resources industry through the acquisition of Gameday International, which manufactures custom mouthguards in a cheaper and more convenient way than the more traditional method of visiting a dentist.
The Gameday product allows consumers to take an impression of their mouth at home and then return it to the company to form the mouthguard, which is then sent back to the consumer.
Gameday’s board includes Matt Weston, who previously held a role at the National Basketball Association with the San Antonio Spurs, and Mr Worsfold, who currently coaches the Essendon Bombers and holds a pharmacy degree.
Under the terms of the deal, Mt Magnet will pay $150,000 in cash and issue 880 million of its shares to Gameday, which at the company’s last closing price of 0.4 cents per share, is equal to about $3.52 million.
Mt Magnet will also issue 880 million performance shares, subject to the achievement of certain milestones.
In order to comply with ASX re-listing rules, Mt Magnet will be required to complete a minimum $2 million capital raising at a price yet to be determined.
The company will also be seeking to dispose of the remained of its interests in four tenements located near the Kirkalocka gold project in the Murchison region, which it sold last year.
“With Gameday’s operating infrastructure, management team and a strong product in place, allied with a marketing strategy ready to be implemented, we aim to build a substantial business and brand while creating significant value for all shareholders,” Gameday chief executive Mr Weston said.
If the acquisition is successful, the combined company will change its name to Impression Healthcare.
It hopes to begin trading on the ASX by mid-May.
Shares in Mt Magnet closed 25 per cent higher to 0.5 cents each.
Meanwhile, Estrella Resources shares lost nearly half their value today after the company announced its proposed reverse takeover of Data Laboratories would not go ahead.
Estrella shares were 48 per cent lower to 1.3 cents each at the close.