TRS posts small loss to remain listed after pushing out Mega deal deadline
Mega's NZX reverse-listing vehicle sees its first-half loss double.
TRS Investments, which is in talks with file storage and encryption firm Mega to be the vehicle for a proposed backdoor listing, said its first-half loss about doubled to $25,000, which it attributed to increased share registry costs.
Under the deal, TRS would acquire Mega for $210 million by issuing 700 million shares at 30 cents apiece to Mega shareholders, after undertaking a 148 for 1 consolidation. Mega shareholders would then own 99 percent of TRS, which would change its name to Mega. Revenue from ordinary activities, which came from interest income, was $1,482 compared to $1,516 a year earlier.
TRS said the documents it must put before shareholders to vote on the acquisition - a notice of special meeting, profile and independent adviser's report, have been submitted to regulators for approvals. TRS and Mega have extended the deadline until Jan. 30, 2015.
Mega was launched by internet entrepreneur Kim Dotcom in 2013 to replace his Megaupload empire, which was frozen after the mogul's high profile arrest at the behest of the US Federal government. He has since stepped back from the firm to fight his extradition and to bankroll the Internet Party, which failed to gain seats in Parliament at this month's general election.
Some 18.8 percent of Mega's shares had been frozen by a restraining order over the assets of Auckland business William Yan
Shares of the shell company last traded at 0.4 cents and have gained 300 percent this year.
(BusinessDesk)
Jonathan Underhill
Fri, 21 Nov 2014
Fri, 21 Nov 2014
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