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- Telecommunications business ZipTel (ZIP) is edging towards relisting on the ASX, with regulatory approvals gained for the purchase of fintech company Douugh
- ZipTel can now seek shareholder approval for the buy which, if gained, will see the company relist as Douugh under the ticker code ‘DOU’
- As payment for the buy, ZipTel will give the current owners of Douugh 275 million ordinary shares, 75 million performance shares, and 75 million unlisted options exercisable at four cents each
- If shareholder approval is achieved without a hitch, ZipTel expects the transaction to be completed on August 21, with its re-listing slated for August 26
Telecommunications business ZipTel (ZIP) is edging towards relisting on the ASX, with regulatory approvals gained for the purchase of fintech company Douugh.
ZipTel can now put the purchase to shareholders. If shareholders vote in favour of the buy, ZipTel anticipates its relisting to occur in late August this year.
The company announced the Douugh purchase in March after an extended time in voluntary suspension. Douugh uses artificial intelligence to help people without financial know-how manage their money, use it wisely, and build up their wealth.
ZipTel said in March once the buy is completed, it will take on Douugh’s name and relist under the ticker ‘DOU.’
As part of the transaction, ZipTel will consolidate its shares on a 1.1-for-two basis, based on its previous 20-day trading low of 1.1 cents per share. On top of this, ZipTel will tap shareholders for $4 million by issuing 133.33 million shares on a post-consolidation basis at three cents a pop.
To compensate the current owners of DOU, Ziptell will cough up 275 million ordinary shares, 75 million performance shares, and 75 million unlisted options exercisable at four cents each.
The performance shares will be issued in three tranches, dubbed Class A, Class B, and Class C. For Class A, the new DOU will need to acquire 10,000 customer accounts or pull in $100,000 in monthly recurring revenue for three consecutive months within three years from the company’s relisting to convert the performance shares.
For Class B, these figures are 12,500 customer accounts or $125,000 within three years.
For Class C, the performance milestones are 25,000 customer accounts or $250,000 within three years.
As long as shareholder approval is received, ZipTel expects the transaction to be completed on August 21, with the reinstatement of shares slated for August 26.
