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.
AUTHOR
Staff Writer
Recommended for you
New Insignia Financial CEO Scott Hartley has detailed the impact of the Godfrey Pembroke exit and the progress in resetting its financial advice model on its latest quarterly results.
With new clients demonstrating lower satisfaction levels than existing ones, Business Health has shared tips for improving clients’ contentment.
Adviser willingness is the key hurdle to the uptake of ESG matters by financial advisers; they should not feel afraid or embarrassed if they are less familiar with what clients are seeking.
In his first move since the acquisition by Count, former Diverger managing director Nathan Jacobsen has taken up a new leadership role in the financial advice space.
