Q Resources has listed today on AIM, as a vehicle for making acquisitions. What caught my eye is the involvement of Rui de Sousa, Soco's Chairman, and is well known to many Stockopedia readers.
At launch it has a market cap. of £3.28m. Here are some key facts & statements from the Admission Document:
Q Resources is a new company incorporated under the laws of Jersey. The Company has been established for the purpose of identifying and acquiring, or making investments in, Resources assets, with an initial focus on Africa and/or South America.
On Admission, Q Resources will have no trading business, giving the Directors a platform to carry out a detailed examination of potential acquisition targets. The Company, in determining potential acquisitions, will consider all sectors of the Resources industry, but will primarily focus on metals and minerals assets.
The Directors intend to complete the first acquisition within 12 months of Admission, which they intend will constitute a Reverse Takeover (and therefore will require Shareholder approval) in order to provide the Company with an operating business. Following the initial acquisition, the Directors will review the strategic development of the Company.
In conjunction with the Admission, the Company has conditionally raised £2.955 million, net of expenses through a placing of 54,583,333 Placing Shares and 13,645,833 2010 Warrants with institutional and other investors, details of which are set out below.
The Directors believe that market conditions over recent years have proven difficult for certain businesses operating in the Resources sector and that an opportunity now exists for acquiring and/or investing in such businesses and/or assets so that their growth potential can be realised for the benefit of Shareholders.
The Directors believe that recent instability in the general economic markets and the Resources industry has created a number of investment and acquisition opportunities and that a number of Resources businesses may be short of capital but yet retain potentially highly valuable assets and operations. By taking advantage of such opportunities and relatively low earnings multiples, the Directors believe they can create value by sourcing further funds and experienced personnel and thereby position the Company to take advantage of demand in the Resources sector. Through these targeted acquisitions, the Directors aim to shorten the otherwise long process they believe the Company would…
