Perth-based Continuation investments (ASX:COT) is a step closer to the acquisition of Hong Kong based multi-channel jeweller Plukka owned by Joanne Ooi and Jai Waney.
An underwriting mandate has been entered into with KTM Capital for up to $10 million in a capital raising associated with the acquisition.
In July, Continuation investments signed a term sheet with Treasure Castle Holdings Limited, owner of "bricks and clicks" jeweller Plukka.
The agreement is subject to a capital raising by Treasure Castle of at least A$0.4 million; the execution of a formal share sale and purchase documentation and 100% acceptance of the offers made to Treasure Castle shareholders and convertible noteholders.
Additionally, Continuation investments will look to raise a minimum of A$8.0 million under a prospectus and compliance with Chapters 1 & 2 of the ASX Listing Rules and shareholder approval.
A share consolidation on a 3-for-4 basis will be undertaken and the capital raising of up to A$10,000,000 at A$0.20 per share post consolidation.
The Plukka “bricks & clicks” model is an online, made-to-order platform with a well entrenched boutique located in the exclusive Landmark shopping mall in Hong Kong.
