Latin Gold (ASX: LAT) should firm in trade after acquisition target Mig33 Group secured a US$2.2 million investment from FIH Mobile Limited.
This investment will be by the purchase of existing securities and subscribing to the rights to new shares in Project Goth, the holding company for Mig33.
Subject to the receipt of Latin Gold shareholder approval and the successful completion of the merger between the mig33 group and Latin Gold, an additional US$7.4 million will be invested by FIH via the placement of 40 million Latin Gold shares at an issue price of A$0.20.
FIH is a vertically integrated manufacturing service provider for the handset industry worldwide.
It is listed on the Hong Kong exchange, with a market capitalisation of over US$4 billion, and its introduction as a significant shareholder will provide the opportunity to accelerate growth plans.
These include the planned establishment of a development centre in Taiwan, which will be focused on business development and extending the Company’s reach into the mobile telephony network.
As a result of FIH’s US$9.6 million investment and subject to completion of the merger, FIH have been invited to nominate two Directors to join the Board of the Company.
Following completion of the merger and share placement, FIH will become the Company’s largest shareholder, with an interest of around 19.9%.
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