Reclaim Industries (ASX:RCM) will trade substantially higher today after revealing it has entered into a Heads of Agreement to acquire Skills Connect.
Skills Connect is a privately owned cloud based business that provides an intelligence solution for multi-sourced human capital.
It has patented a three way connectivity system between a candidate, recruitment firms and businesses.
This is the first fully integrated, secure, searchable, multi-site enterprise cloud solution with mass personalised individual candidate account management.
By utilising a customised Google Search Application, Skills is able to deliver rapid search and filtration of candidates in order to streamline the recruitment process.
The key benefits of the Skills Management System are that it provides transparency, accountability and significant cost savings that ensures margins are maintained.
Skills received the Red Herring Global 100 Award in 2012 for Hong Kong, and was a finalist for Los Angeles.
Under the terms of the agreement, a Share Sale Agreement is to be executed within 60 days.
Reclaim will issue 400 million shares upon completion of the acquisition; 350 million shares upon achievement of Milestone 1; 300 million shares upon achievement of Milestone 2; and 20 million Facilitation Shares upon completion of the acquisition.
The agreement is subject to RCM successfully completing a capital raising of at least $2.5 million, mutual due diligence, and shareholder and regulatory approval.
Reclaim is currently seeking a sophisticated placement to raise $582,000 at $0.006 by issuing 97,000,000 shares.
Prior to the acquisition announcement, Reclaim was capitalised at $3.5 million.
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