Latin Gold (ASX: LAT) is joining the exodus to the technology sector jettisoning the minerals sector to acquire a social entertainment platform, likely leading the share price higher.
A business known as mig33 with a digital social entertainment platform will be acquired by Latin Gold in return for the issue of 720 million shares to the various shareholders of mig33.
Key terms to the proposed transaction are the combined Latin Gold and mig33 Group will have net cash resources of at least A$5 million and receipt of all necessary shareholder approvals are obtained.
This includes holders of shares in the mig33 Group approving the transaction and the merger agreement and Latin Gold shareholders approving the transaction.
Holders of mig33 would own 30.5% of Latin Gold after the proposition is put to its shareholders in March.
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