- Binding agreement signed to acquire CHOOSE Digital and RooLife, two synergistic businesses that are expected to drive revenue growth and provide opportunities to deploy OpenDNA’s Artificial Intelligence System (AIS) across multiple industry sectors
- Proposed acquisition features low upfront consideration, with further payments subject to achievement of revenue milestones
- Key CHOOSE Digital and RooLife personnel will bolster OpenDNA’s existing Board and Management team, providing significant additional industry experience and execution capability
- Firm commitments received to place $2.5m worth of shares to sophisticated and professional investors, to fund acquisition and provide working capital for the enlarged OpenDNA business
- Intention to undertake Share Purchase Plan following successful completion of the Placement
Artificial Intelligence company OpenDNA Limited (ASX: OPN) (“OpenDNA” or the “Company”) is pleased to announce that the Company has entered into a binding Heads of Agreement (“HOA”) to acquire two Australian-based companies, CHOOSE Digital Pty Ltd (“CHOOSE Digital”) and RooLife Limited (“RooLife”). Under the HOA, the acquisition of both companies (“Acquisition”) forms part of a single transaction which is conditional, amongst other things, on due diligence and OpenDNA shareholder approval (anticipated to be sought as soon as possible).
OpenDNA has also received firm commitments to place a total of 71,428,571 new fully paid ordinary shares (“Shares”) to sophisticated and professional investors at $0.035 per Share, together with one free attaching option for every two Shares (“Options”), to raise a total of up to $2.5 million before costs (“Placement”).
The Options will have an exercise price of $0.05 per Share and an expiry date of 31 October 2021. Funds raised from the Placement will be used to complete the Acquisition and to provide working capital for the enlarged OpenDNA business, with a focus on unlocking strategic benefits between OpenDNA, CHOOSE Digital and RooLife and driving associated revenue opportunities.Download full article as PDF
Commenting on the acquisition, OpenDNA’s Chairman, Grant Pestell, said:
“The acquisition of CHOOSE Digital and RooLife provides a significant opportunity to unlock multiple synergies for the enlarged group. CHOOSE Digital is a complementary business to OpenDNA, that will bolster our sales and marketing team as well as expand its customer base. CHOOSE Digital is cashflow positive and has an existing and growing customer base, providing opportunities for OpenDNA’s AIS to add value, whilst RooLife provides an immediate entry point into the Chinese market and an opportunity to rapidly scale the business.”