LONDON (Alliance News) - Supply chain management and distribution company Ross Group PLC said Thursday it will acquire chitin extraction company Archipelago Aquaculture Group Ltd, or AAG, through a share issue.
Shares in Ross shot up 57% to 0.94 pence on Thursday.
Ross will buy AAG from shrimp aquaculture developer Global Blue Technologies Inc. The initial payment will be 17.9 million shares at a placing price of 1 pence each to Global Blue shareholders, and there will be an additional payment of 26.7 million shares at 1 pence each as well.
Based on these figures, the total price will be approximately GBP446,000. Following the acquisition, Global Blue will hold 44.6 million shares or a 20% stake in Ross.
Further to this, Global Blue executives John Peter Keyes, Victoria White, and Stephen LaPointe will join the Ross board as executive directors. Franklin Fay and Lorenzo Juanta will also join Ross as non-executive directors, and Georg Hollander will join as an independent non-executive director.
AAG has no gross assets, revenue, or profit, although it intends to become revenue-producing "in the near future". Its principal business is the development of chitin, which is a biodegradable polymer which occurs in the exoskeletons of crustaceans and insects and has applications in the pharmaceutical and textile industries.
Ross Grp. (RGP)