It’s a 100% shareholding interest in Rex Technology Management.
RTM’s suite of proprietary and innovative exploration technologies will now be under Rex International Holding Limited, with the acquisition completed by 1 December.
Rex International Holding announced that it has signed a sale and purchase agreement to acquire 100% shareholding interest in Rex Technology Management comprising Rex Gravity, Rex Seepage, and Rex Virtual Drilling, of which the company is the exclusive licensee, at a nominal price of $1.5.
In a media release, it was indicated that all RTM staff will be bounded by non-compete agreements. Dan Broström, Executive Chairman of Rex International Holding, said, “Over the past year since our listing in July 2013, we have received feedback from many investors, their preference for our key differentiator, the Rex Technologies and specifically, Rex Virtual Drilling, to be housed in the listed entity.”
“Having RTM under the Group will allow us to bolster our value offering, over and above our portfolio of high quality assets scanned with Rex Virtual Drilling, as we will have complete control over the use of the proprietary Rex Technologies. RTM will immediately contribute attractive recurring income from their existing contracts. There remains much potential for future research and development advancements for the Rex Technologies.” Mr Broström added.
Mr Hans Lidgren, one of the founders of Rex International Holding and head of technology development at RTM, said, “We are committed to giving Rex International Holding full support for it to achieve its vision to be a leading independent exploration and production company that has an international portfolio of concessions, selected using our proprietary Rex Technologies. The RTM team is excited to join the Rex International Holding family and looks forward to even closer collaboration going forward.”
RTM has signed contracts with an estimated annual value of US$10 million. Revenues from RTM will be consolidated on Completion Date. The Company expects RTM to contribute positively towards the Group’s revenue in the fourth quarter of 2014.
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