Latin Gold (ASX:LAT) should trade higher today after mig33 acquired www.alivenotdead.com, a major Asian artist and entertainment management group.
In January, Latin jettisoned the minerals sector to acquire a social entertainment platform.
A business known as mig33 with a digital social entertainment platform would be acquired by Latin Gold in return for the issue of 720 million shares to the various shareholders of mig33.
Mig33 is a social entertainment platform with over 3 million users.
Alivenotdead.com is already cashflow positive, so will be immediately revenue and earnings accretive to the mig33 and thus Latin Gold.
Notably for Latin, the cost of the alivenotdead.com acquisition is provided for within the existing acquisition terms for mig33.
This means that no additional Latin Gold shares need be issued, other than those issued to acquire the mig33 group of companies.
The acquisition of alivenotdead.com will enable alivenotdead.com’s growing stable of over 1,800 artists to engage with, grow and monetise their audiences among mig33’s members.
Latin Gold has surged from $0.006 in November last year to a high of $0.038 today, largely in response to its move into the digital sector.
The company is now capitalised at around $12 million.
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