Coretrack Limited (ASX:CKK) is proceeding to complete the acquisition of Ecopropp, which produces fly-ash based ceramic proppants for use in the hydraulic fracturing of oil and gas wells globally.
In May 2014, Coretrack entered into an agreement to acquire 100% of Ecopropp shares.
Consideration for the acquisition is to be via three tranches of Coretrack shares, based on the achievement of three agreed milestones.
With the recent changes to its board, Coretrack has been advised by the key vendors that it was considered that Milestone 1 under the option is deemed to have been satisfied, resulting in the option being exercised.
Additionally, this also results in the outstanding condition to the Sale Agreements being satisfied.
The company will now proceed with completion of both the option and the sale agreements in accordance with their terms.
Coretrack will issue 295 million new shares (being the Milestone 1 Shares) priced at $0.011 as consideration for the purchase of Ecopropp on a pro-rata basis to the key vendors and the other vendors.
With completion of the recent placement, this represents 28.92% of the total issued capital of the company.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.