The acquisition is to pave the way for Wellspring Worldwide to undertake a reverse take-over (RTO) of loss-making SMTrack. The RTO exercise will trigger a mandatory general offer for SMTrack shares at 14 sen, according to the announcement to Bursa Malaysia. Wellspring Worldwide is the global master licensor of “Tutti Fruitti Frozen Yogurt” and “O'My Buns!”. In conjunction to the proposed acquisition of Wellspring Worldwide, SMTrack proposed to undertake a rights issue on the basis of three rights shares for every two existing shares. The cash call is sweetened with free warrants on the basis of two warrants for every three rights shares subscribed.

Source: The Edge Markets June 15, 2017 14:51 UTC