(MENAFN- ProactiveInvestors)
’ () move to transform itself into a revenue generating IT solutions provider continues to prove its value with Cirrus Networks securing $4.6 million in new contracts in the March 2015 quarter.
This is encouraging given that it recorded unaudited revenues of $6053386 for the half year ending December 2014.
Cirrus had recorded audited revenues of $5869723 for the full-year ended 30th June 2014.
In January Liberty exercised an option to purchase 100% of the issued capital of Cirrus and is now finalising the merger requirements.
The acquisition of Cirrus an IT solutions integrator involves a significant change to the nature of the company’s activities.
Cirrus’ business assists both corporations and governments reduce costs and improve services with respect to their Information Technology.
Liberty has also entered into two separate conditional sales agreements to sell its wholly-owned subsidiaries Urea Corp of Australia Pty Ltd Boab Energy Pty Ltd and Rhodes Resources Pty Ltd.
New Contracts
Cirrus Networks is continuing its rapid growth securing lucrative contract worth about $4.6 million.
These are with:
- $2.1 million EMC storage contract with Western Australia’s largest locally operated bank;
- $1.75 million iiNet’s VMware Enterprise Licencing Agreement; and
- $750000 for Curtin University’s next generation Palo Alto security solution.
The expansion of Cirrus’s portfolio into new industries particularly into tertiary education reflects the success of a 12-month strategy to provide solutions for industries outside of mining oil and gas.
The contract wins highlight the company’s solid industry position at the forefront in providing efficient information technology solutions for blue chip clients.
Growth is expected to continue with strong sales pipeline and expansion into new industries.
“We are delighted to have secured contracts that demonstrate our capabilities across such a diverse range of industries and technologies. These wins signify our strong position in the Western Australian information technology market” Cirrus managing director Frank Richmond.
Selling Mineral Tenements
Should the Cirrus acquisition be approved by shareholders Liberty will be transitioning out of mining and into the provision of information technology services and products.
As such the company has entered into two conditional agreements to sell its subsidiaries.
Urea Corp and Boab – Queensland Tenements
Liberty has entered into a conditional agreement to sell Urea Corp and Boab to private company Ngai Shing Trading Ltd.
Between them Urea Corp and Boab hold the MDL446 MDLA479 and EPC1949 tenements.
EPC 1949 is held as to 40% in joint venture with former subsidiary Walloon Energy Pty Ltd now owned by third parties.
The terms of this sale are as follows:
- One thousand dollars ($1000) up front;
- Ten thousand dollars ($10000) by way of reimbursement to Liberty of the relevant tenement bonds;
- In the event that NTS raises new capital to develop or advance a tenement then Liberty hall be paid one hundred thousand dollars ($100000) of that capital;
- In the event that NTS on sells a tenement and/or the entity being purchased itself then the purchaser must also pay to Liberty part of the relevant proceeds as a first priority up to $100000; and
- In the event that that the purchaser lists an entity which holds any of the applicable tenements then each Liberty shareholder on the share register on 9 January 2015 will be offered no less than 40% of the listed entity on a pro-rata basis to the shares held in the Company at the relevant prospectus price.
Rhodes – Western Australian Ajana Graphite Application
In addition Liberty has entered into a conditional agreement with a private company associated with managing director Andrew Haythorpe Ouro Pty Ltd (“Ouro”) pursuant to which Liberty will sell to Ouro all the issued shares in Rhodes.
Rhodes is the applicant for Western Australian Ajana Graphite Application E66/89 which is located 60 kilometres north of Northampton in the North Perth Basin.
Terms for this sale are:
- One thousand dollars ($1000) up front;
- In the event that the tenement is sold by Rhodes then the sum that is the lesser of 10% of the relevant sale proceeds or $500000 shall be payable to Liberty (Cirrus Networks) by Rhodes which sum shall be paid within 14 days of receipt;
= In the event that that Rhodes lists (initial public offering or “backdoor” listing) on the ASX with the Rhodes Asset then each Liberty shareholder on the share register on the date of Settlement of the Cirrus acquisition will be offered a first right to invest in Rhodes on a pro-rata basis to the Liberty shares held at the relevant prospectus price; and.
- Clauses (b) and (c) terminate within 24 months of Settlement and all future obligations between the parties cease at that time.
Analysis
The proposed merger with Cirrus Networks will deliver cash flow and growth for .
This is amply demonstrated by Cirrus securing $4.6 million in new contracts just in the March 2015 quarter.
Should shareholders approve the transaction it will also mark Liberty’s exit from the mineral sector.
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