Capital raising leads to new acquisition for YBR
Yellow Brick Road (YBR) moved to acquire non-bank mortgage manager Resi, partly thanks to a recent capital raising arrangement.
After temporarily suspending its trade on the Australian Securities Exchange (ASX), the company revealed it has signed a $36 million acquisition deal with the lender to be paid in both cash ($28 million) and shares ($5.5 million YBR shares), with the remainder of the sum deferred for a year.
The settlement is expected to happen on August 29, subject to shareholder approval, which is the same date the previously announced acquisition of Vow Financial is due to be finalised.
The two acquisitions follow a period of capital raising by YBR, which saw it collect over $42 million through placement shares.
"Funds raised via the Placement will be used to pay, in part, the cash component of the purchase consideration for the Resi and Vow acquisitions and to provide general working capital for the Company," the ASX announcement said.
YBR has also renewed the contract of executive director, Mark Bouris, for another five years, at a base annual rate of $1,125,000.
Bouris' term was due to expire in June 2015.
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