Proposed Plus Connect acquisition to boost Activistic presence in Australia
Published 22-SEP-2016 16:56 P.M.
2 minute read
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Thursday’s announcement by Activistic (ASX: ACU) that it has entered into a Bid Implementation Agreement (BIA) to make an off market takeover offer to acquire Plus Connect is an important development for the company as it would facilitate access to one of the most widely accepted charitable and not for profit fundraising activities in the world, charity based lotteries.
To provide some insight into the proposed acquisition, Plus Conne
ct is an Australian based company established to commercialise a new generation of online and app-based betting and social gaming products. The group aims to deliver a socially responsible wagering model providing significant benefits to partner charities and sporting organisations.
Following regulatory approvals the charity product was launched in 2014 with Plus Connect focusing on business and cost consolidation while implementing systems and partnerships to deliver its broader business strategies.
The group’s first charity product is the Weather Lottery, an online lottery wagering product marketed in collaboration with designated Australian charities and operated under the group’s Northern Territory licence.
Plus Connect is developing an online lottery wagering product to be marketed in collaboration with sporting clubs and associations in Australia. This product will offer bets on the results of a Sports Lottery product offered under a Norfolk Island licence.
Features of this product include a fixed odds bet on the outcome of sports lottery, the payment of 25 cents/$1 to the sporting club with the added attraction of driving customer engagement with the club. This product is scheduled for launch in late 2016.
However the date is yet to be finalised, so if considering this stock for your portfolio, take into account all information and seek professional financial advice.
Proposed consideration for the acquisition under the BIA is 180 million ACU shares which equates to 3.07 ACU’s shares for each Plus Connect share.
ACU has also agreed on completion of the acquisition to issue 12.5 million shares to a Plus Connect creditor in satisfaction of a $250,000 debt.
ACU has also agreed under the BIA to provide financial support for the ongoing development of Plus Connect by way of a $500,000 loan to assist with working capital and marketing expenditure.
In the event that the acquisition does not proceed, the loan funds will be repayable within 60 days of the BIA being terminated and attract interest at a commercial rate of 10% per annum on the balance outstanding from day to day.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.