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RLV No. 3, in acquisition talks, plans 1-10 consolidation

Friday 25th July 2008

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RLV No. 3 Ltd., an empty shell company set up to facilitate the listing of another business, plans a one-for-ten share consolidation as it begins negotiations for an acquisition.

The shell company had planned to assist with the reverse listing of The Joneses on the NZAX, where RLV would acquire shares in TJRE Holdings, which owned the real estate agent. The plan faltered with the The Joneses calling in the liquidators.

RLV didn't give details of the other party in its July 23 statement, saying talks were "at an early stage pending further information."

At the same time, Ken Millar and Sandra Cornwell resigned from the company, according to the statement. RLV No. 3 spokesman Brett Wilkinson wasn't immediately available to comment.

The Wilkinson and White website says reverse listing vehicles, or RLVs, enable companies to achieve a reverse listing without taking on an existing shell structure that may be hobbled with debt or outstanding liabilities.

The share consolidation would be of stock as held at 5pm on August 8. Shares of RVL trade infrequently and were last at 0.7 cent on July 22. The prior trade to that was on Feb. 26 at 2.5 cents, though only 7000 shares total traded on those two days. Heaviest trading was on February 15, when 302,000 changes hands at 2.3 cents, three days before The Joneses reverse listing was called off.

By Jonathan Underhill

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