Regarding the announcement yesterday re Annual Meeting some very good things to point out.
Re: The companys plans going forward:
The Board’s strategy will create a new second tier engineering, maintenance and construction group that will meet industry demand through acquisition, amalgamation and integration of private companies, coupled with organic growth of existing companies to provide services initially in WA, followed by NT in the medium term then to Australia wide. To date numerous acquisition targets have been identified and are in various stages of evaluation. The first building block is the acquisition of the Seller, which the directors believe will provide the opportunity to organically grow the business as well as complementing any future acquisitions.
Re: Key advantages, disadvantages and risks of the Transaction (advantages IMO far out weigh the disadvantages);
The key advantages of the Transaction are: • Positive contribution to Earnings Per Share • Strategic Entry into the Resource Services Sector • Provides organic growth opportunity • Access to a database of skilled tradespeople • Access to a government approved on-hire labour agreement allowing the company to bring in suitably skilled foreign tradespeople. • Access to blue chip clients. • Access to suitably qualified in house migration expertise • The ability to mobilise tradespeople for shutdowns and projects.
The key disadvantages and risks of the Transaction are: • Slowdown in the resource services sector • Loss of key staff and key tradespeople • Deferral of key resource projects
Restricted Securities;
The shares to be issued to the Seller may be subject to escrow in accordance with the ASX Listing Rules. ASX may in its absolute discretion impose an escrow for a period of up to 24 months from the date of the issue of the shares to the Seller.
Resolution 7 dependent on Resolution 6;
As at the date of this Notice, Mr Peter Dykes, Mr Richard Melville Wright and Mr Carmelo Bontempo have each indicated that they are each prepared to take up Shares.
If resolution 6 is not passed Fermiscan will not proceed with the issue of shares under the prospectus and the passing of resolution 7 will not be relevant.
I hold.
FER Price at posting:
1.8¢ Sentiment: LT Buy Disclosure: Held