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TRS shareholder Paul Choiselat mum on support for Mega reverse listing

Paul Choiselat, the controlling shareholder of TRS Investments [NZX: TRS], is staying mum on whether he'll agree to a deal to list Kim Dotcom's Mega data storage and encryption company until he sees the paperwork.

The Melbourne-based Mr Choiselat is currently facing 25 charges relating to market manipulation and concealing his interests in listed companies while he was a director of Q Ltd and Jimbuck Entertainment. The charges were laid by the Australian Securities & Investment Commission in December.

On March 20 the Melbourne Magistrates Court ordered an adjournment for a committal mention on April 7.

Auckland-based TRS plans to buy Mega for $210 million by issuing 700 million shares at 30 cents apiece to Mega shareholders, after undertaking a 148 for 1 consolidation. Mega shareholders would own 99 percent of TRS, which would adopt Mega as its name.

Choiselat's family interests own 73 percent of TRS, making his support for a reverse listing of Mega vital if he retains his stake when shareholders vote on the transaction. If he backs the Mega deal, his family interests would end up owning about 5.4 million shares, or 0.77 percent of Mega, worth $1.64 million at the 30 cent valuation.

Choiselat hasn't been on the TRS board in about five years, and wasn't involved in the transaction, he told BusinessDesk in an email.

"As such, I will consider the matter when documents get circulated to shareholders for the shareholder vote which will be required," Choiselat said. "Similarly, I can't comment on what we might do with our stake in the future."

The Mega deal sparked a flurry of activity in TRS shares yesterday, with a record volume 42.6 million shares, or 3.8 percent of the company's stock, changing hands. The price surged 900 percent to a seven-year high 1 cent, valuing the company at $11.1 million, and the Choiselat family stake at $8.1 million.

Mega chief executive Stephen Hall said yesterday he hopes to conclude the deal in May, though that timeline could slip as various regulatory approvals are needed for it to proceed.

Hall said the company doesn't plan to raise any capital in the immediate future, though it may consider a share purchase plan to let existing TRS shareholders get a meaningful stake in Mega after their share consolidation.


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Comments and questions

Can we not stop Mr Com from infiltrating NZ structures at any level?
Are we such muppets after all? Where is the bar set in NZ?

If he buys his way into parliament via the Pretend Party and uses his position to evade US extradition we should seriously consider our political system as Failed.

If he is allowed near the NZSX we should reconsider the FMA's ability to spot manipulative fraudsters, even when they are six foot seven and weigh more a small car.

I cant believe the 73% shareholder was not consulted on a deal that requires over 75% support.

Hardly surprising - the way the NZX blindly allows backdoor jobs invite contempt.

Our Ozzie cousins tend to think of the NZX and participants as country hicks who cannot tell a pig from a dingo.

Plus SMS will always be a leading light for the Choiselats and Dotcoms of the world to show their contempt for the NZX and New Zealanders.

You're right on there Harvey.

And if you're not raising any capital, why list at all??

Something smells.

What you can smell is the smell of dump.... a big Pump and Dump.

The CEO said they are not raising capital, and none of the shareholders want to sell, so yes, why list at all.