Acquisition of composite pallet component manufacturer will provide financing for growth
Note: As reported in Reuters on Aug 16, 2017, Kairiki Energy Ltd is not proceeding with the transaction to acquire Biofiba Limited. The following report was from May 2017.
Kairiki Energy Limited (ASX: KIK) has executed a conditional agreement to acquire 100% of the issued share capital of Biofiba Limited (Biofiba) www.biofiba.com an unlisted Australian public company headquartered in Sydney, New South Wales. Biofiba has developed and now manufactures pallet components from Biofiba®, an extruded product made from commercially grown, industrial hemp, designed to biodegrade into harmless environmental compost. To read recent coverage of Biofiba’s North American launch in Pallet Enterprise Magazine, click here.
- Consideration for the acquisition of Biofiba will be the issue of ordinary shares in Kairiki.
- The all-scrip transaction is subject to the successful completion of due diligence by both parties. Appointment of Biofiba Directors to the board of Kairiki.
- Appointment of Biofiba Directors to the board of Kairiki. Acquisition of Biofiba will convert Kairiki into the sole hemp technology development company listed on the ASX.
- Capital-raising of $5 million to fund growth, including marketing and sales.
- Acquisition of Biofiba will convert Kairiki into the sole hemp technology development company listed on the ASX. Capital-raising of $5 million to fund growth, including marketing and sales.
- Mr. Paul Sanbrook of Biofiba will join the Company as Chief Executive Officer.
- In consideration for the acquisition of 100% of the ordinary shares held in Biofiba, Kairiki will issue 555,833,677 fully paid ordinary shares in Kairiki to Biofiba’s shareholders and convertible noteholders (Consideration Shares).
- In addition to the Consideration Shares, Kairiki will issue a further maximum of 370,549,118 shares (Earnout Shares) to Biofiba’s shareholders if projected revenues are met in the 2018 and 2019 financial years.
- The Consideration Shares will be subject to voluntary escrow for 12 or 24 months following the recommencement of trading in the Company’s securities on the ASX.
To read the detailed press release and corporate summary, click the ASX Announcement link.
This announcement first appeared in May 2017.