Sharechat Logo

Powerhouse investee firm Motim calls special meeting for asset sale

Tuesday 17th April 2018

Text too small?

Mobile marketing tech firm Motim Technologies, whose chair was dumped by cornerstone shareholder Powerhouse Ventures in January, will hold a special meeting at the end of the month to approve an asset sale as a precursor to a US listing. 

 

Christchurch-based Motim will hold a special shareholders' meeting on April 30 where investors will vote on whether to approve the sale of the company's assets to Massachusetts, US-based Motim Technologies LLC, Powerhouse said in a statement. 

 

The transaction will value the new entity at US$15 million, with Motim shareholders taking a 30 percent stake in the US business. ASX-listed, Christchurch-based Powerhouse owns 41.8 percent of the New Zealand company's equity and $700,000 in secured convertible notes. 

 

"The prospects for material value creation using Motim's original software should be greatly enhanced through the US networks, profile and expertise provided by the prospective buyer," Powerhouse said in a statement to the ASX. "The new owner proposes to apply considerable resources to the growth of the business, based in Boston, culminating in a proposed US listing." 

 

Powerhouse dumped the former Motim chair John Cunningham in January accusing him of not calling a shareholders' meeting when requested and replacing him with John Walley. The following month, Powerhouse said it had a firm offer to buy Motim from US-based CrossTech Partners in a largely scrip deal. 

 

The incubator, which invested $719,000 in Motim, estimated a potential uplift in value of its Motim stake to A$3.6 million provided there's a successful initial public offering of the new vehicle for US$15 million. 

 

Powerhouse had planned to raise A$5.8 million in a deeply discounted rights issue to replenish its rapidly shrinking coffers, but canned that last week in favour of an immediate injection of A$400,000 from two shareholders via convertible notes and when combined with further commitments may provide it with A$1.85 million. 

 

The company is also looking to sell part or all of its 20 percent stake in Invert Robotics. 

 

Powerhouse shares last traded at 18.5 Australian cents and have slumped 42 percent so far this year. 

 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Take care to avoid "unnecessary" cost in electrifying economy - Vivid
Is this the calm before a storm of credit card thrashing?
Shrinking meat and dairy product manufacturing weighs on growth outlook
Jon Macdonald to stay on as Trade Me boss through takeover tussle
Shareholders’ Association wants Finzsoft to come clean
A2 rings in more executive changes under new CEO Hrdlicka
NZ dollar dips as China-US trade tensions cast pall over global markets
No end in sight to global market turmoil
MARKET CLOSE: NZ shares rally on speculation of flat US rate track; Spark gains
Fed's wait-and-see signal keeps NZ dollar steady for the week

IRG See IRG research reports