Explorex Resources Inc (CSE:EX) (OTCMKTS:EXPXF) revealed that it has closed the deal to acquire Singapore-based financial services company Raffles Financial Pte Ltd.
The Vancouver-based said it will now be known as Raffles Financial Group Limited after its mineral assets plus C$500,000 in cash were spun out to Origen Resources Inc, which plans to go public on the Canadian Securities Exchange shortly.
Explorex’s main assets included cobalt projects in Finland and several Canadian jurisdictions with historic production. Shareholders will hold one Origen share for every two shares held in Explorex, whose CEO, Gary Schellenberg, will helm Origen.
READ: Explorex wins shareholder approval for Raffles acquisition; corporate move to the Cayman Islands
"The transaction has provided the existing shareholders with two distinct avenues to benefit from their initial holdings,” Schellenberg said in a statement. “For our part we, the management of Origen, have significant plans to move the company forward and will endeavour to continue rewarding the shareholders as our plans are enacted."
Origen recently raised C$200,500 via a private placement, selling 1.1 million units priced at C$0.18 each which comprised one share plus one warrant exercisable at C$0.22 for a two-year period. Its board will comprise Schellenberg, Mike Sieb, William Wishart, James Mustard and Jerry Bella.
Following a move to the Cayman Islands and a share consolidation on a 25.94-to-1 basis, Raffles now has 1.05 million shares outstanding. As part of the process, 45 million Raffles Financial Group shares were issued to the shareholders of Raffles to acquire Raffles, so that Raffles will be a wholly-owned subsidiary of RFG. The board of Raffles consists of chairman Charlie In, Victor Liu, Abigail Zhang, Kit Chan, Mike Zhou, Lily Ren and David Anthony Bruzzisi.
"We are delighted to be listed on CSE and believe this will strengthen the Raffles Financial Group's capital, shareholder base, business expansion and profit growth,” Raffles chair Charlie In said in today's statement.
Raffles also completed a private placement raising C$20 million by way of the sale of 4 million shares priced at C$5 per share.
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