The Board of Broad Investments Limited (BRO) is very pleased to announce it has made a further acquisition by entering into an agreement to purchase a substantial stake in a technology business. As stated is recent announcements, the Board has been conducting due diligence and pursuing numerous value-adding transactions, and is pleased to be able to reveal a further transaction which has the potential to significantly increase shareholder value. The acquired business is involved in health industry technology, although it also has potential applications beyond health services. It is currently developing a unique product for the Australian marketplace which will focus on providing greater efficiencies in patient services, while driving new business and increased income for participating health professionals. Considerable R&D and progress has been made in moving the business towards a launch date. Similar businesses have been developed in other markets internationally and have generated exceptional returns for shareholders.
The vendors of the business will sell 51% of the business to a fully owned subsidiary of Broad for 74,000,000 Broad shares at an issue price of $0.003. This means that Broad receives exposure to a business with huge potential to add value for shareholders, while being able to preserve its cash position for business development. As part of the acquisition consideration, Broad has agreed to provide additional debt funding for the development of the business through to the launch date to a maximum limit of $500,000. In addition, the vendors grant Broad the right to purchase the remaining 49% of the business for $1,500,000 payable in cash and / or shares, exercisable within three years from today’s date.
http://www.traderdealer.com.au/fundamentals/bro
