News: Stratum Metals to acquire social commerce platform

Stratum Metals (ASX:SXT) has signed an option agreement to acquire a proprietary social commerce platform that combines entertainment, competitions, discounted shopping and charities.

This continues the trend of exploration companies transitioning to the technology sector.

Stratum is acquiring 100% of Win Win Holdings, including its wholly-owned US subsidiary Competitive Shopping Network Inc., through the issue of shares and performance shares.

The Competitive Shopping subscription platform allows users to win products and entertainment experiences at no cost while simultaneously earning credit points redeemable for onsite discounts.

It is expected to be launched in the U.S. in mid-2015.

WinWin has a dynamic management team with extensive experience gained from leading technology companies, including FTD.com, Viacom/Nickelodeon, Symphony Technologies, Betfair, Amazon.com and Facebook.

Completion of the acquisition is expected to result in a change of Stratum’s name to WinWin Limited and the appointment of two new directors including co-founder and current executive chairman of WinWin, Ross Lyndon-James.

In order to provide working capital to complete the transaction, Stratum is raising up $400,000 through the placement of 53.3 million shares at $0.0075 each to sophisticated and professional investors.

Settlement of the acquisition is conditional upon the meeting the following conditions:

- Conditional approval by ASX to reinstate the securities of Stratum to trading on ASX;
- Stratum undertaking a placement and receiving valid applications for at least $3.5 million;
- Completing due diligence on WinWin’s business and operations.
- Stratum convertible notes held by Mountain Gold International Ltd being either assigned to a third party or cancelled and replaced with notes convertible into Stratum shares to be issued to a third party;
- Conversion of other convertible notes into shares;
- Consolidation of issued share capital on a 1 for 2 basis; and
- Shareholder approval.

Separately, the company has signed a mandate to appoint RRT Management Pty to introduce royalty finance provider(s) to raise $1.8 million for its wholly-owned subsidiary Menzies Goldfield.

Proceeds will be used to further exploration and development of the G-VAN Project in Western Australia that is targeting gold production in late 2015 through an ore processing agreement.

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