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ISCOVER
Staff Reporter
Yellow Brick Road and ASX listed ITS Capital Investments have today announced an agreement that will see a share swap across both businesses.
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According to an ASX press release, ITS will acquire 100 per cent of the issued capital of Yellow Brick Road in return for the issue of up to 99.3 million ITS shares.
While the acquisition is still waiting for ITS shareholder approval, it is expected that the deal will be approved within the next few working days.
Each of the current shareholders of Yellow Brick Road have agreed to sell, and ITS has agreed to buy each of the 21,500 existing issued shares of YBR.
But a Yellow Brick Road spokesperson told The Adviser that Mark Bouris remains the owner and his management team will continue to run the business.
Acording to the spokesperson, contrary to some media reports Yellow Brick Road has not been sold.
The ASX announcement stated that "it is envisaged that upon successful conclusion of the Transaction, ITS would cease its current operations and future operations would consist solely of the activities of YBR group of companies".
Once approved by shareholders, ITS will be required to undertake a public capital raising of at least $6 million.
