- Iron ore miner New Millennium Iron (NML) is planning to combine with fintech developer Abaxx Technologies in an all-share offer valued at over C$50 million
- Following a 12-to-one share consolidation, New Millennium will issue its total 11.1 million shares to Abaxx shareholders at 0.809 NML shares for every one Abaxx share
- Once complete, previous shareholders in New Millennium and Abaxx will own a 17.8 per cent and 82.2 per cent stake in the resulting inssuer, respectively
- Pending shareholder approval, the new company is expected to list on the TSXV under the name Abaxx Technologies Inc and focus on the industrial, technology and life sciences sectors
- New Millennium (NML) is up 23.08 per cent and is trading at eight cents per share
Iron ore miner New Millennium Iron (NML) is planning to combine with fintech developer Abaxx Technologies in an all-share offer valued at over C$50 million.
Through a reverse takeover, New Millennium will consolidate all its shares on a 12-to-one basis before issuing the resultant 11.1 million shares to Abaxx shareholders at 0.809 NML shares for every one Abaxx share.
The share exchange represents a 27 per cent premium on the NML’s recent trading average and implies C$0.80 price for each Abaxx share, which equates to a full float value of around $50.7 million.
Once complete, previous shareholders in New Millennium and Abaxx will own a 17.8 per cent and 82.2 per cent stake in the resulting insure, respectively.
Director and CEO of Abaxx, Joshua Crumb will transfer into the same position in the new company and be a major shareholder at around 17.5 per cent interest.
Alongside Joshua, two New Millennium directors will remain serving in the new company, with the rest of the new board put forth by Abaxx.
The new company is expected to list on the TSXV under the name Abaxx Technologies Inc and will focus on the industrial, technology and life sciences sectors.
This leaves the fate of New Millennium’s current iron ore properties in Labrador and Newfoundland unknown, though the incoming management team intends to evaluate strategic opportunities for these assets, once the transaction completes.
New Millennium will need to seek shareholder approval for the offer at a special meeting, which has been scheduled on November 13, this year.
New Millennium (NML) is up 23.08 per cent and is trading at eight cents per share at 10:55pm EDT.
