- Affiliate marketing network iSynergy (IS3) enters into a share purchase agreement for the proposed acquisition of POSTech, a food delivery app and rewards program platform
- The total consideration payable by IS3 comprises the issue of 55 million fully paid ordinary shares at a deemed issue price of 3.6 cents per share, as well as the issue of 55 million unlisted options at an exercise price of 5 cents, with an expiry date two years from the date of issue
- Upon settlement of the agreement, iSynergy has proposed to conduct a placement to raise nearly $1 million, mainly for POSTech activities, and appoint founder and CEO of POSTech Kevin Coutinho as Executive Director and Chief Technical Officer
- iSynergy will lodge a notice of meeting within the next seven days to seek shareholder approvals, with an extraordinary general meeting anticipated for early March
- Shares were up 13.3 per cent to 5.1 cents
Affiliate marketing network and solutions provider iSynergy (IS3) has entered into a share purchase agreement (SPA) for the proposed acquisition of POSTech, a food delivery app and rewards program platform.
The total consideration payable by IS3 comprises the issue of 55 million fully paid ordinary consideration shares at a deemed issue price of 3.6 cents per share, as well as the issue of 55 million unlisted consideration options at an exercise price of 5 cents with an expiry date two years from the date of issue.
iSynergy Managing Director Dato Lawrence Teo Chee Hong said the company intends to utilise its existing affiliate marketing expertise to improve the POSTech platform.
“The proposed acquisition of POSTech will provide iSynergy with a greater presence in Australia, with an experienced team of operators and a contracted client base of around 300 to 500 merchants and product offerings,” he said.
“The two businesses will also be able to share expertise in the form of management and technology, with the aim of improving iSynergy’s service offerings to clients across Australia and South-East Asia”.
Upon settlement of the SPA, iSynergy has proposed to conduct a placement to raise $992,010, of which about 80 per cent of funds raised will be used to fund POSTech activities.
Funds totalling $992,010 are planned to be raised through the issue of 27,555,838 fully paid ordinary shares at an issue price of 0.036 cents per placement share to sophisticated investors being clients of Alto Capital.
At settlement, founder and CEO of POSTech Kevin Coutinho will be appointed as Executive Director and Chief Technical Officer of iSynergy.
A programming expert, Mr Coutinho is the founder and CEO of both the Rewalty food ordering app and Humanbot information technology firm.
Settlement of the SPA will be subject to various conditions, such as obtaining necessary shareholder approvals.
iSynergy will lodge a notice of meeting with the ASX within the next seven days to seek shareholder approvals, with an extraordinary general meeting (EGM) anticipated for early March.
Settlement of the proposed acquisition is expected three business days following the EGM.
One business day following the settlement, holding statements for consideration shares and options, placement shares, free-attaching options and advisor options are expected to be issued.
Following settlement, iSynergy hopes to issue 27,555,838 free-attaching (on a 1-for-1 basis with each placement share) options for a nil issue price to the sophisticated investors on the same terms as the consideration options.
iSynergy also proposes to issue 2,200,000 fully paid ordinary shares at an issue price of 0.001 cents per share to the company’s corporate adviser Ventnor Capital or its nominees.
The company’s shares were up 13.3 per cent to 5.1 cents at 3pm AEDT.