CHA
A brief background and sources for more information on Charlies.
An example of backdoor listing or reverse takeover.
Short finance history:
- Spectrum Resources Limited changed its name to Charlies Group Limited 15-Jul-05, and on the same day issued 145,750,000 new shares to the previous shareholders of Charlies Trading Company Limited at 8c (see Company Office details). Share price closes at 15c.
- The Spectrum deal was agreed in February 2005, requiring purchase of all shares in orange juice company Charlie’s Trading Company Ltd and the sale of Kinetiq (its existing business) to one of its directors, and included a 1:10 share consolidation. Spectrum was largely a cashed up shell company at Dec-04 with equity of $2.1m at Dec-04 and $1.7m cash in the bank, with shares trading around 2c.
- Effectively the takeover saw Charlies shareholders receive (in shares) the value of their company (see next bullet) while Spectrum shareholders received (in shares) the value of their company, comprising $745,000 Goodwill and the rest largely cash in the bank.
- Charlies Trading Limited was valued at $11,660,000 in the takeover although how this valuation was derived is unclear – the June 2006 Annual Accounts show an increase in Charlie’s Group net assets of $14.8 million from Mar-05, a period spanning the takeover and the $10m purchase of Pheonix (below), implying assets due to Charlies Trading Limited of around $4.8m (and hence implicit goodwill of around $6.8m in the takeover).
- In Dec-05, CHA bought Pheonix Organics for $10,132,256 cash, around the time also issuing new shares for $12,446,000 (less $392,00 issue costs) to Collins Asset Management Limited and other parties.
- Staff took up options to buy newly issued shares at 10c during 2007, 2008 and 2009, raising around $670,000
- By December 2009 shares at 8 cents.
- Bought out by Japan’s Asahi Beverages for 44c in Aug-2011 and company delisted.
Excel file of equity raising: CHAhistory
