RIGHTCROWD TO ENGINEER ASX LISTING THOUGH REVERSE TAKEOVER
Written on the 17 November 2016 by James Perkins
GOLD Coast IT company RightCrowd will take a backdoor route onto the ASX through a reverse takeover of Omni Market Tide (ASX: OMT).
In the half year to 30 June, the company made a $2.5 million loss. Four directors and the company secretary resigned between March and August and then it made a further $1 million loss in the quarter ended 30 September.
A $35 million capital raise will be led and underwritten by Morgans as part of the deal, and this will give the new company an implied value of $85 million.
Upon completion, RightCrowd founder and CEO, Peter Hill, will become an executive director of the new company, which will change its name to RightCrowd.
The funds raised will be used to build global sales capabilities, for the continued evolution of its products, and for long-term research and development of new products.
Several conditions essential for the deal to proceed will be ticked when OMT shareholders meet in December.