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Powerhouse investee firm Motim calls special meeting

Powerhouse investee firm Motim calls special meeting for asset sale

By Paul McBeth

April 17 (BusinessDesk) - Mobile marketing tech firm Motim Technologies, whose chair was dumped by cornerstone shareholder Powerhouse Ventures in January, will hold a special meeting at the end of the month to approve an asset sale as a precursor to a US listing.

Christchurch-based Motim will hold a special shareholders' meeting on April 30 where investors will vote on whether to approve the sale of the company's assets to Massachusetts, US-based Motim Technologies LLC, Powerhouse said in a statement.

The transaction will value the new entity at US$15 million, with Motim shareholders taking a 30 percent stake in the US business. ASX-listed, Christchurch-based Powerhouse owns 41.8 percent of the New Zealand company's equity and $700,000 in secured convertible notes.

"The prospects for material value creation using Motim's original software should be greatly enhanced through the US networks, profile and expertise provided by the prospective buyer," Powerhouse said in a statement to the ASX. "The new owner proposes to apply considerable resources to the growth of the business, based in Boston, culminating in a proposed US listing."

Powerhouse dumped the former Motim chair John Cunningham in January accusing him of not calling a shareholders' meeting when requested and replacing him with John Walley. The following month, Powerhouse said it had a firm offer to buy Motim from US-based CrossTech Partners in a largely scrip deal.

The incubator, which invested $719,000 in Motim, estimated a potential uplift in value of its Motim stake to A$3.6 million provided there's a successful initial public offering of the new vehicle for US$15 million.

Powerhouse had planned to raise A$5.8 million in a deeply discounted rights issue to replenish its rapidly shrinking coffers, but canned that last week in favour of an immediate injection of A$400,000 from two shareholders via convertible notes and when combined with further commitments may provide it with A$1.85 million.

The company is also looking to sell part or all of its 20 percent stake in Invert Robotics.

Powerhouse shares last traded at 18.5 Australian cents and have slumped 42 percent so far this year.

(BusinessDesk)

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