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Resource Star lifts into cloud space

Resource Star lifts into cloud space

Resource Star (ASX:RSL) should trade higher after it secured an exclusive Option to acquire Australian cloud computing service and infrastructure provider Cloud Lands Digital Fortress.

Cloud Lands’ business model is to aggregate Tier 2 enterprise and SME customers and provide full service grade cloud services with Tier 1 support from a leading global IT services and hardware supplier.

Cloud Lands also intends to use a world leading global IT networking and computing hardware vendor  and the pre-eminent global security equipment and software supplier to offer an integrated and secure enterprise class hardware, software and service solution.

Subject to the payment of an Option fee of $100,000, Resource Star has been granted a 90 day due diligence period.

Where the Option is exercised by Resource Star, completion of the acquisition will be conditional upon the satisfaction of a number of conditions.

These include completion of a capital raising of not less than $3,500,000, a consolidation of shares, and all other necessary shareholder and regulatory approvals.

Acquisition terms

RSL will pay Cloudlands shareholders a non-refundable Option fee of $100,000, followed by a cash payment of up to $500,000 on exercise of that option.

RSL will also issue 3,000,000 shares on a post-consolidation basis, and 3,000,000 options to acquire RSL shares, exercisable at $0.20 each and expiring on 31 March 2016, and 10,000,000 performance shares.


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