TechFinancials (AIM:TECH) said it has received shareholder approval for the issuance of new shares as a means of paying for the acquisition of Optionfortune, a Hong Kong-based marketing company. The acquisition is part of TechFinancials’ expansion plans for Asia.
The shares to be used in the transaction should not exceed 6 per cent of TechFinancials’ total issued stock.
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The company closed a joint venture deal with Optionfortune last month, according to which the UK-listed company will have a 51 per cent stake in the new entity. Among the stipulations of the deal is also a provision to issue more shares to the owners of Optionfortune, based on the financial performance of the combined entity over the next two years.
TechFinancials’ Chief Executive Officer Asaf Lahav said: “The Board believes that this JV will strengthen the long-term sustainability and consistency of our growth expectations while generating extra cash flow. This JV is in keeping with TechFinancials’ IPO strategy to grow our business into new territories and markets, and to expand the Group’s presence in the high growth markets, such as the Asia Pacific region.”