- Auctus Investment Group (AVC) is looking to expand its reach by purchasing a 24 per cent interest in Impact Investment Partners
- The company will acquire an initial 14 per cent stake through two separate subscriptions
- An additional 10 per cent will then be acquired through a share swap with existing Impact shareholders
- Completion of the deal remains subject to a the formation of a final agreement and the completion of due diligence by Auctus
- Shares in Auctus Investment Group were up 5.17 per cent at the close of trading yesterday to $0.61 each
Auctus Investment Group (AVC) is looking to expand its reach by purchasing a 24 per cent interest in Impact Investment Partners.
Based in Melbourne, Impact is focused on identifying and building essential infrastructure to assist indigenous communities through their community-led infrastructure model.
These projects span a number of industries, including energy generation and storage, water supply, health facilities and university accomodation.
Under the terms of the preliminary agreement, Auctus will acquire an initial 14 per cent interest in Impact through two separate subscriptions.
The first will be completed through a payment of $1.05 million in exchange for a 7 per cent holding in Impact, which will include Board observer rights for Auctus.
The second, which will take place three months later, will include another payment of $1.05 million for an additional seven per cent stake. Once completed, Auctus will be granted a seat on Impact’s Board of Directors.
Auctus says the proceeds from these subscriptions will provide a healthy capital injection for Impact, increasing the efficiency of its infrastructure model and and bolstering investment management.
The remaining 10 per cent interest will be acquired through a share swap with existing Impact shareholders, valued at $1.5 million. While the exact number of shares to be issued has not yet been determined, they will be based on the five-day volume weighted average share price prior to the share swap taking place.
Campbell McComb, Managing Director of Auctus Investment Group, noted that Chris Croker, Impact’s Managing Director, and his team “have a unique position in improving indigenous economic participation in and access to these infrastructure services.”
“For Auctus, there is significant alignment with our existing funds and relationships across healthcare, energy infrastructure and student housing,” he added.
Completion of the deal remains subject to a the formation of a final agreement and the completion of due diligence by Auctus.
Shares in Auctus Investment Group were up 5.17 per cent at the close of trading yesterday to $0.61 each.