Inventory Technologies to use NZF shell for NZX listing
Inventory Technologies, the healthcare technology developer, will join the NZX via a reverse listing using the shell of NZF Group [NZX: NZF], the listed financial services company blocked from liquidating earlier this year by its major noteholder.
NZF will acquire 100 percent of the Christchurch-based tech business for $5 million via the issue of 20 million new shares at 25 cents apiece, the Auckland-based shell company said in a statement. NZF will also restructure its own notes, paying noteholders 11 cents and issue 89 NZF shares per note held as part of the deal, and asking them to forgive all accrued but as yet unpaid interest.
Inventory Technologies is owned by Peter Montgomery, founder of Mooring Systems which was listed on the NZX in the early 2000s before merging with the Dutch Cavotec Group in 2007, and Peter Gillman. The 'internet of things' business plans to commercialise its Cleversense healthcare management technology in the first quarter of 2015, with its Clever Medkit product, a first aid kit which connects to the cloud, monitoring its use and inventory.
"Inventory Technology does not currently generate any meaningful revenue stream, but the NZF board and the executive of Inventory Technologies believe that the prospects of the business are strong and the company has a material first mover opportunity to scale and grow its business internationally," NZF said. "Noteholders are not going to receive an immediate recovery of the full face value of their capital investment in the notes in cash."
The reverse takeover comes after initial talks with an undisclosed business fell over in October. At the time of that announcement NZF said urgent due diligence had begun with a second party, which had the backing of NZF's largest noteholder, Nessock Custodians, which according to its annual report held 15.8 percent of NZF's $18 million in capital notes at June 13.
NZF's board has been looking for a company to use its shell as a reverse listing after Nessock Custodians delayed liquidation at a special meeting in August to try to find more value in the business.
The board first suggested liquidation in April. Restructuring plans aimed at returning the company to profitability fell over when auditor RSM Prince resigned a day after NZF was forced to restate its first-half results for a second time.
The shares last traded in December last year at 1 cent, valuing the firm at $1.1 million.