20151217_Transaction_Funding_Agreement
Forte Energy NL ACN 009 087 852
AIM Release
17 December 2015
Transaction Funding Agreement
Forte Energy NL ("Forte" or "the Company") (AIM: FTE), is pleased to advise that it has entered into a transaction funding agreement with DJ Family Trust ("DJFT") as a first step towards reaching an in-principal agreement to enter into a corporate transaction in the financial technology sector.
Under the agreement, the Company will receive A$200,000 via a Convertible Note. The key terms for the Convertible Note are as follows:
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Principal amount: AS$200,000;
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Maturity date: 2 years from date of issue; and
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Conversion price: the lender may elect to convert all or part of the loan at 90% of an average weighted market price calculated from selected trading days during the 15 trading days prior to conversion.
The Company has also entered into a Conditional Option Agreement with DJFT over its 51% controlling stake in BOS GLOBAL Limited ("BGL"). DJFT is the private investment vehicle of Michael Travia, founder and Group Chief Executive of BGL. The funds from the Convertible Note will be used to support the Company whilst negotiations are finalised and approvals sought for a potential reverse takeover by BGL, subject to Shareholder approval of both companies.
The terms of the proposed transaction will be announced once final agreement has been attained with the ultimate aim to acquire all of the issued capital of BGL. After completing the agreement, shareholder approval would be sought under the reverse take over ("RTO") provisions of the AIM Rules. It is anticipated the proposed RTO complete by April 2016 and will be subject to shareholder approval. It is envisaged that the Convertible Note will be repaid from capital raised at the time of the RTO.
BGL is an unlisted Australian public company focused on the aggregation of cloud technology investments targeting banks, financial institutions, insurers and professional consulting organisations. BGL has extensive FinTech experience with its established network of professional investment, enterprise sales, product marketing, product design, software development and support capabilities worldwide. BGL has publicly stated its objective to be a listed organisation in UK, Australia and United States over the coming five years. This transaction is the first step to achieving its stated goals for shareholders. For further corporate information about BGL visit www.bosglobal.biz .
The Company looks forward in the near term to advising shareholders of any developments, including the final terms of the proposed transaction.
For further information contact: Mark Reilly, Managing Director
Forte Energy NL Tel: +61 (0) 8 9322 4071
Oliver Morse
RFC Ambrian Ltd Tel: +61 (0) 8 9480 2500 (AIM Nominated Adviser to the Company)
Forte Energy NL
Suite 3, Level 3
1292 Hay Street West Perth WA 6005
Ph: +61 (0)8 9322 4071
Fax: +61 (0)8 9322 4073
Email: [email protected] Web: www.forteenergy.com.au