(MENAFN- ProactiveInvestors)
() will transition to a revenue generating tech company after shareholders overwhelmingly voted for a change in the business’ main operations its board and the company’s name.
Liberty shareholders fully endorsed an option to purchase 100% of the issued capital of Western Australian information technology provider Cirrus Networks Pty Ltd a transaction first mooted in October last year.
The decision will see around 286.9 million post consolidation Liberty ordinary shares comprising 52.6% of Liberty’s issued capital after a proposed minimum capital raising of $3 million issued to the vendors of Cirrus.
Shareholders also voted to change the company’s name to Cirrus Networks Holdings Limited.
Cirrus currently has contracts in place with some of Australia’s premier companies including Argyle Diamonds Western Australia Police Roy Hill Iron Ore LandCorp Tronox Ltd Emeco Holdings Ltd and Keystart Home Loans.
Cirrus has already identified additional growth opportunities across Australia and was last year named in Australia’s Technology Fast 50 Awards as the second fastest growing “Rising Star” technology company in Australia.
Outgoing Liberty managing director Andrew Haythorpe said the transaction provided a new value-adding opportunity for the company’s shareholders in a different sector and away from the junior exploration segment which was stagnating under sustained disinterest from equity markets.
“Action had to be taken particularly after the failure by the then Queensland Government to finalise its policy on underground coal gasification nullifying Liberty’s proposed coal to urea project in that State".
There is no cash consideration involved in the shareholder approved transaction and the issue of further shares to the vendors of Cirrus as part of the purchase consideration is linked to financial milestones such as achieving annualised revenue of $12 million and the achievement of EBIT hurdles substantially in excess of the audited Cirrus business.
Proactive Investors Australia is the market leader in producing news articles and research reports on ASX emerging companies with distribution in Australia UK North America and Hong Kong / China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.