GeoOp shareholders approve merger with InterfaceI   5 May 2016

Article - BusinessDesk

Thursday 05 May 2016 02:22 PM

GeoOp shareholders approve merger with InterfaceIT, vote in Sharp as directer

By Jonathan Underhill

May 5 (BusinessDesk) - GeoOp shareholders have overwhelmingly approved a merger with Australian mobile sales app developer InterfaceIT and welcomed Roger Sharp to the board, where he is to replace Mark Weldon as chairman.

Reporters were barred without explanation from the special meeting in Auckland today, which came a day after Weldon's surprise resignation under intense media gaze as chief executive of MediaWorks.

Some 91.74 percent of votes cast were in favour of the transaction, which will see a workforce management app developer GeoOp buy InterfaceIT for $9 million in shares and convertible notes. Independent adviser Simmons Corporate Finance valued InterfaceIT at between $6.1 million and $8.5 million and added an additional $2.3 million to $4 million of benefits arising from a merger.

Shareholders also cast 91.73 percent of votes in favour of issuing 15 million shares at 40 cents apiece and 3 million unlisted convertible notes at a face value of $1 each to the vendors of InterfaceIT to finance the transaction.

The purchase price may increase based on the performance of the merged entity over the 12 months following completion. The vendors will initially own about 32 percent of the enlarged business and their stake could rise to as much as 64 percent if certain conditions, in what the independent adviser called a worst-case scenario for GeoOp shareholders.

Simmons Corporate said in its report that GeoOp would have needed to raise new capital in the near future at its current spending rate if the deal didn't proceed. At Dec. 31, the company had $2.7 million in cash, down from $1.5 million a year earlier.

InterfaceIT is a joint venture between entrepreneur Jordan Muir and merchant bank North Ridge Partners, which as part of the deal will be given a mandate to advise on a potential capital raising, which would coincide with or precede a listing on the ASX. The Australian company provides cloud-based programmes for managing in-field, face-to-face sales teams. Its customers include Trustpower, Australia's Simply Energy, Aussie Farmers Direct and Telstra, and SunRun in the US.

Some 91.73 percent of votes cast were in favour of appointing InterfaceIT's Sharp to the board. Weldon was to stay on as a director after being replaced as chair.

On a pro-forma basis, GeoOp and InterfaceIT would have reported a loss of $4.2 million loss in the first half on revenue of $4.3 million, GeoOp has said previously. The companies have agreed to continue a cost reduction plan within the first 12 months of the two entities being operationally combined.

GeoOp said the combined entity is expected to reach break-even in the second half of 2017, with a significantly reduced cash outflow over 2016 and the first half of 2017.

GeoOp's NZAX-listed shares last traded at 28 cents and have tumbled 45 percent in the past 12 months.

(BusinessDesk)

ends

Add a comment

News

Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students

29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more

New Zealand reaffirms support for Flight MH17 judicial process

7 Mar 2020 News By Rt HON WINSTON PETERS
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more

Business

NZ Government's Economic package to fight COVID-19

17 Mar 2020 Business News By RT HON JACINDA ARDERN
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more

NZ Government announces aviation relief package

19 Mar 2020 Business News By Hon Phil Twyford
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more

Living

Diversity was Key at New Zealand Trade Tasting in London

6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall. It was the first... more

Kiwi author stuns Behind the Butterfly Gate

12 Jan 2022 Arts By Charlotte Everett
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...  New Zealand writer Merryn Corcoran’s... more

Property

Fairer rules for tenants and landlords

17 Nov 2019 Property By Minister Kris Faafoi
17 NOVEMBER 2019 The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more

New Zealand Government will not implement a Capital Gains Tax

17 Apr 2019 Property By RT HON JACINDA ARDERN
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more

Migration

Boosting border security with electronic travel authority – now over 500,000 issued

19 Nov 2019 Migration By Hon Iain Lees-Galloway
19 NOVEMBER 2019 We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more

Christchurch reinstated as refugee settlement location

18 Aug 2018 Migration
18 AUGUST 2018 HON IAIN LEES-GALLOWAY The announcement that Christchurch can once again be a settlement location for refugees... more

Travel

Gallipoli Anzac Day services cancelled

19 Mar 2020 Travel & Tourism By RT HON JACINDA ARDERN
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more

New Zealanders advised not to travel overseas

19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas more

Sport

The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners

27 Oct 2019 Cricket By Charlotte Everett
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more

PREVIEW: All Blacks v England semi-final

26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more

Columns

Gordon Campbell on the Gareth Morgan crusade

11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade First published on Werewolf The ghastly likes of Marine Le Pen in France and Geert ... more

Gordon Campbell on the US election outcome

10 Nov 2016 Opinion
Column - Gordon Campbell   Gordon Campbell on the US election outcome Well um.. on the bright side, there (probably)... more

Kiwi Success

Congratulations to Loder Cup winner

26 Sep 2018 People By Hon Eugenie Sage
25 SEPTEMBER 2018 The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more

Appointments to New Zealand National Commission for UNESCO

16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO HON JENNY SALESA Associate Education Minister Jenny Salesa is... more

Recruitment

Historic pay equity settlement for education support workers

14 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more

Historic pay equity settlement for education support workers

22 Aug 2018 Recruitment By RT HON JACINDA ARDERN
14 AUGUST 2018Historic pay equity settlement for education support workers RT HON JACINDA ARDERN HON CHRIS HIPKINS Prime Minister The... more