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Crowd Mobile remains Confident in Track Acquisition

Crowd Mobile remains Confident in Track Acquisition
Jul 15, 2015 By Ben Visser

Crowd Mobile Ltd (ASX:CM8) has provided an update on its proposed acquisition of Netherlands based Track Holdings BV.

As part of the initial round of funding, the company has received a term sheet for US$10million ($AU13million) of debt funding. Negotiations continue with a number of debt and mezzanine funding providers in Europe, Asia, and Australia. Crowd Mobile remains confident they are on track and the acquisition will take place in August this year.

Crowd Mobile CEO, Domenic Carosa, said: "We remain confident in our ability to close out additional funding negotiations that will ensure the successful completion of the Track Concepts acquisition."

The company’s legal counsel is working on final preparations of the Share Purchase Agreement as all independent due diligence has been completed and no significant matters of concern have been identified.

Mr Carosa continued “Crowd Mobile is currently connected to over 60 mobile operators in over 25 countries, and messaging volumes are continuing to increase month on month. With the acquisition of Track Concepts, Crowd Mobile will significantly increase its reach, connecting to over 160 mobile operators across 50 countries.”

Since becoming ‘Crowd Mobile’ on the ASX late last year the company experienced a steady decline in its share price that ended abruptly on the announcement of a promising third quarter update in May. More importantly, the share priced rallied in early June as news broke that the company has entered into a Heads of Agreement to acquire Track Holdings BV. The company’s share price rose 50 per cent in two days following the announcement however has since settled. Following the update today, the company’s share price has risen 2.63 per cent as investors remain optimistic about the acquisition.

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Ben Visser Author: Ben Visser Jul 15, 2015

Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.

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