The full story - share will be lock away for a year , $700k revenue is the story.
Plus deal to connect the dots
Plus Connect makes an attractive acquisition prospect for ACU for a whole basket of reasons, least of which is how quickly they can move via existing revenue models.
Plus Connect’s commercial products are designed with significant profit margins in mind, ranging 30-50%.
On the topic of money, let’s look at how that side of the deal is likely to play out.
As Plus Connect is a public but unlisted company, the transaction will be an off-market takeover offer to acquire.
Following are the terms regarding the proposed deal – a total consideration of 180 million ACU ordinary shares, plus an additional 12.5 million ACU shares to be issued to a Plus Connect creditor in satisfaction of a $250,000 debt.
As well as that, each Plus Connect shareholder will receive 3.0779 ACU ordinary shares for each Plus Connect share held; and 56.4% of Plus Connect shareholders have agreed to voluntarily escrow their ACU shares for a period of 12 months.
All going well, the transaction is scheduled to be wrapped up by early December.
Plus Connect are a reseller of largescale European lottery products which keeps revenue humming in the background
A reliable revenue stream is a good thing to have when dealing with the sometimes volatile world of fundraising and donations.
Plus Connect also boasts a low break-even point for their two current lottery products.
Via charity lottery, already up and running, the company is targeting a net revenue of $712,500 per month from less than 100k customers each paying $25 a month.
Meanwhile off the back of the Sports Lottery concept, the company is targeting a similar revenue number of around $762,500 per month.
Adding to the compelling case for this transaction is the clean entry it offers ACU into the Australian market, a step that until now had proven difficult for the company.
Tapping into their home markets would also mean hitting separate, but similar, customer-bases while maximising the expertise of one unified team with cross-pollination across technical expertise and general support services.
Opportunities for cross-selling across platforms certainly won’t hurt ACU’s push for publicity, either.
Speaking of publicity – ACU is in multiple advanced discussions with celebrities which could provide important endorsements and validations of its technology and get that mass uptake the company would like to see.
ACU Price at posting:
4.9¢ Sentiment: Buy Disclosure: Held
