Burleson Energy (ASX:BUR) will parachute into the nano-satellite technology sector through the acquisition Sky and Space Global (UK) Limited, which is incorporated in England.
Sky and Space Global have the ability to provide phone and messaging communication solutions anywhere globally.
This technology has the potential to offer communication rates significantly cheaper, than existing providers due to significantly lower costs of operation.
This positions the company to disrupt the growing $5 billion revenue global satellite narrow-band communications market (forecast to be worth $10 billion by 2021).
Burleson has entered into a binding heads of agreement for the acquisition, which would constitute a change in the nature and scale of the company’s activities.
It would also require shareholder approval and re-compliance with Chapters 1 and 2 of the Listing Rules.
Burleson will have to lodge a prospectus and raise an indicative minimum of $4,000,000 at no less than $0.02 a share.
Consideration
- US$100,000 within 5 business days of execution of the agreement.
- 3.7 billion shares.
- 1.5 billion performance shares in various tranches.
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