Photo by: Bloombeg
PERTH (miningweekly.com) – The share price of ASX-listed junior Radar Iron jumped nearly 83% on Wednesday after the company announced a change of pace.
Radar on Wednesday said it had entered into a binding heads of agreement to acquire Israel-based technology company Weebit-Nano, which is one of the world’s foremost developers of silicon oxide resistive random access memory technology.
Radar Iron would pay A$75 000 for an exclusive 28-day option, and a further A$75 000 on the completion of a due diligence and Weebit’s majority shareholding passing a resolution to approve the transaction.
In exchange for the technology company, Radar Iron would issue 750-million of its own shares to Weebit shareholders, subject to ASX escrow provisions.
The transaction had a number of conditions, including Radar Iron undertaking a capital raising of at least A$5-million, as well as all necessary shareholder and regulatory approvals.
Radar Iron’s foray into the technology sector comes after the company abandoned its Brazilian iron-ore exploration work in April and as the junior worked to minimise costs and retain cash. The company also surrendered four of its tenements in the Johnston Range, in Western Australia.
Radar Iron was trading at a high of 11c a share on Wednesday, up from a low of 8c a share.