The business will now have a new ownership structure after ASX-listed Mobile Embrace agreed to pay $4.7 million under a two-step deal to buy up to 72 per cent of Clipp.
Under the deal, 31 per cent of Clipp has been acquired from existing shareholders of Clipp by Mobile Embrace through the issue of 4.59 million new Mobile Embrace shares at 26¢ per share. A $3.5 million convertible note has also been issued to Clipp, with quarterly drawdown of funds over the next 18 months.
Mobile Embrace can convert any drawn down funds into equity at any stage and if fully drawn and converted into ordinary shares in Clipp, the ASX-listed firm would hold a total stake of 72 per cent in Clipp.
A further 2.29 million options in Mobile Embrace exercisable at 39¢ have also been issued to some of the early stage investors in Clipp.
