Shares in WA mining firm Spencer Resources have quadrupled in value on news that it will merge with cloud computing provider Bulletproof Networks this year.
Under the agreement, which was announced before the market opened today, Spencer will buy 100% of the privately held Bulletproof, and take on Bulletproof’s founders Anthony Woodward and Lorenzo Modesto as CEO and COO respectively.
The firm will be renamed Bulletproof Limited, which will then look to divest its mining exploration assets and raise $1.6 million in a capital raising round managed by Taylor Collision.
The reverse takeover is subject to Spencer shareholder approval. Spencer will suspend trading on the ASX between December 6 and December 23, while capital raising takes place.
Bulletproof reported a revenue of $14.83 million in the 2013 financial year, while Spencer made a $497,000 loss on revenues of $59,000.