SYDNEY: Swift Media Limited has entered into a share sale agreement to sell 100% of the issued capital of Medical Channel Pty Ltd to Motio Limited for a consideration of 30 million shares in Motio.
Swift announced the sale of the Health and Wellbeing business to Motio Limited to create a leader in digital healthcare media, a news release said.
Motio is a dedicated place-based specialist media organisation with a strategy to build scale in health-based advertising.
Swift will be issued with 30 million ordinary shares in Motio. Initial consideration of 20 million ordinary shares will be issued immediately at completion with 15 million ordinary shares be held in escrow for up to 18 months from completion.
10 million shares will be issued post completion, subject to Motio shareholder approval, or $1 million in cash where shareholder approval is not received.
Swift will own 12.85% of Motio’s issued capital post issuances. Motio’s share price closed at $0.105 on the last trading day prior to the announcement, with a market capitalisation of $21m.
The sale of Medical Media represents another important step in Swift’s strategy of streamlining and focus towards the Mining & Resources and Aged Care verticals. The value received for the sale further increases Swift’s resources to expand into its two core verticals.
The transaction is expected to complete on April 1, 2021.
Swift CEO Pippa Leary said, “We are excited by the combination of Swift’s Health and Wellbeing assets with Motio. The enlarged business has a clear growth strategy, singular focus and the ability to deliver value across one of Australia’s premium place-based media assets.
The retained equity stake in Motio will enable Swift’s shareholders to benefit from synergies and growth. We look forward to the business increasing value for Swift’s shareholders”.
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Motio is a leading Digital Place-Based & Location Intelligence media company. It is focussed on creating memorable brand and customer experiences across its expansive digital marketing environments. Its networks leverage long dwell time locations, delivering powerful, contextual connections to audiences, underpinned with first party data and location intelligence technology.
Swift Media is a specialist technology company delivering premium entertainment and communications to via 60,000 rooms nationally across Mining and Resources, Residential Aged Care and Hospitality environments.