HomeNewsCanadian firm in Brainworks reverse takeover

Canadian firm in Brainworks reverse takeover

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CANADIAN exploration company Rock Tech Lithium has announced plans to acquire issued and outstanding shares of Brainworks Capital Management (Pvt) Limited, a company incorporated in Zimbabwe.

Business Reporter

In a statement recently, Rock Tech said it had appointed Jordan Capital Markets subject to completion of satisfactory due diligence to act as sponsor for the planned acquisition.

“The transaction is intended to take the form of a corporate combination whereby, subject to regulatory and shareholder approval, Rock Tech will acquire all of the issued and outstanding shares of Brainworks in exchange for common shares in the capital of Rock Tech.

“The transaction will constitute a reverse takeover (RTO) pursuant to the policies of the Toronto Stock Exchange.”

An RTO is a type of merger used by private companies to become publicly traded without resorting to an initial public offering.
Initially, the private company buys enough shares to control a publicly-traded company.

Jordan Capital Markets Inc is an independent investment dealer established in Western Canada to service domestic and international retail, institutional and corporate clients.

Jordan became a member of both the Investment Industry Regulatory Organisation of Canada and the Canadian Investor Protection Fund in October, 2008.

Rock Tech is a company focused on developing its lithium and graphite projects located in Canada.

In 2009, the company acquired the Georgia Lake lithium property located near Thunder Bay, Ontario.

Brainworks is Zimbabwe’s private equity investment and advisory company primarily focused on investing in the financial services, mining, tourism, real estate and energy sectors in Zimbabwe.

As at June 30, 2013, Brainworks had total assets of $35,6 million while its total invested capital or equity was $26,7 million.

Upon the completion date of the transaction, the resulting issuer will be involved in the investment sector.

Brainworks currently has 456 924 869 shares issued and outstanding and no other classes of shares or convertible securities have been issued. Brainworks has 30 shareholders of which none hold a controlling interest.

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