Reverse takeovers are popping up all over the ASX this year, especially between tech companies and listed mining vehicles.
The trend is largely being driven by the bottom falling out from underneath many mining juniors who have, in recent years, struggled to provide strong returns to investors and attract funding to continue project development.
On the flip side, many tech companies are looking for cheaper ways to list and raise funds to grow.
Continuing the trend, anti-counterfeit tech company YPB Group today closed a $3.7 million raising at $0.20 a share, ahead of its reverse takeover of ASX listed mining investment shell AUV Enterprises.
In the investor prospectus AUV chairman Robert Whitton said the Hong Kong registered tech company was looking to raise up to $6 million. The raising was led by Sydney-based corporate advisory firm K S Capital.
YPB said a listing date has not been confirmed yet but the reverse takeover will be completed “in the near future”.
The tech company produces indestructible and invisible anti-counterfeit systems for companies operating in China and across Asia where it estimates the authentication market is currently valued at $US14 billion a year.
The funding will be used boost sales and marketing plans as well as product development which includes an app that helps consumers identify products as real or fake.