to acquire vertigo china for 550000

Sydney - Wednesday - June 7: (RWE Aust Business News) - Lumacom
Ltd (ASX:LUM) will acquire Vertigo China, a Hong Kong company offering a
range of manufacturing and design services to the outdoor media market,
for $550,000.
Vertigo provides large format signage, design fabrication and
installation of light boxes and neon, LED and specialist lighting.
It also provides similar services in modular street furniture,
transit furniture and mall media furniture.
The acquisition includes 100 per cent of a Chinese subsidiary
which operates a small factory in Tianjin, China.
This factory produces product for Vertigo as well as having its
own customer base.
A feasibility study will be conducted to assess whether LumaPanel
can be produced by this factory and the level of savings this can
generate.
In addition, Vertigo has a 14pc investment in a UK-based sign
manufacturer whose product range includes backlit and edge lit
advertising boxes.
Lumacom will pay for the acquisition through the assumption of
existing debt within Vertigo, plus the issue of 115m performance shares
which carry no rights and will not be listed on the ASX until vested.
These shares will vest based on certain dates and several of the
operating subsidiary's EBIT trigger points and be issued at a face value
of 6c each.
Lumacom has established a subsidiary in Hong Kong to acquire the
Vertigo business and has advanced $50,000 to Vertigo against security
over specified invoices raised by Vertigo.
Should the transaction not proceed the advance will be returned
and the subsidiary will be purchased by Vertigo shareholders at cost.
Lumacom shares last traded at 3c.