Harvest Is Soon to Become Smart Marine System’s Fully Owned Subsidiary Company

Smart Marine Systems Limited (ASX: SM8), a company from Information technology sector which is engaged into research, development, and commercialization of technologies that mitigate shark attacks, announced that it has entered into the binding term sheet to acquire Evolution Subsea Pty Ltd. Harvest technology is a specialist subsea service provider.

The company expects that the due diligence will get completed by 12 March 2019. After the completion of the due diligence and the shareholder approval to issue consideration shares, the company will acquire 100% of Harvest by issuing 15,000,000 shares at 2.2 cents per share. With this, Harvest will become the wholly owned subsidiary of SM8. Based on the ASX as well as shareholders’ approval, the existing shareholders of Harvest will be issued performance rights for up to 80,000,000 shares based on specific Harvest revenue targets established by the company.

The company seeks to raise working capital worth $2.5 million, post the completion of the due diligence. After receiving approval from the shareholders, the company would be able to raise $1.2 million working capital by issuing shares at 2.2 cents per share. Another $600,000 will be raised through Harvest management team at 2.2 cents per share which will be based on the existing placement capacity as per the listing rules 7.1 and 7.1A. Also, the company expects to raise another $700,000 through a non-renounceable rights issue at 2.2 cents per share.

Harvest Technology is a new dynamic solutions and service provider to the subsea technology, renewable energy and oil, and gas sectors. Through the range of cutting-edge technologies of Harvest along with the in-house marine monitoring products of SM8, the company would be able to offer unique personalized subsea solutions. Further, the management team of Harvest is highly experienced. Mr Paul Guilfoyle heads the management team of Harvest. The team collectively has more than 60 years of marine and subsea technology expertise.

Further, Harvest will also provide many immediate synergies to the operations of Smart Marine Systems Limited. At present, all the subsea activities of SM8 for the Clever Buoy technology are contracted to third parties. However, through the infrastructure and expertise of Harvest, the company can undertake the component of the work in-house. Harvest would also provide the immediate offshore service market Clever Buoy applications as well as its strategic relationships with the provider of global marine technology which will enable the company in the further development of the Clever Buoy technology into new industries.

 On 28 February 2019, the company has declared a trading halt of its securities in relation to the business acquisition announcement by the company which got lifted post the announcement on 1 March 2019.

Today, the company also announced its half-yearly results for the period ended 31 December 2018. During the period, the company’s revenue was down by 31.04% to $21,503 as compared to the previous corresponding period. The company’s loss during the period was $819,225 down by 27.70% as compared to the previous corresponding period.

In the last six months, the stock has generated a negative return of 30%. However, the YTD results were positive where the stock generated a return of 16.67%. At the closure of the trading session on 1 March 2019, the price was A$0.018, down by 14.286% from its previous closing price. The market capitalization of the company is A$2.69 million with approximately 128.06 million outstanding shares.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.