Threat Protect Australia Limited (“Threat Protect”) - Public Offer

Overview

ASX listed junior East Africa Resources (EAF) has agreed to acquire 100% of Threat Protect, a provider of security, monitoring and risk management solutions. A general meeting of EAF shareholders will be held on the 5th August 2015 to seek approval of the acquisition, the restructure of the shares and activities of the company and change its name to Threat Protect Australia. As part of the deal, they will raise up to $5.5m via a prospectus issue at 2 cents, with proceeds largely going towards two contracted security business acquisitions which are expected to materially increase its customer base, revenue and profitability. In addition, Threat Protect has developed and will launch imminently a Personal Duress App which will be marketed to existing clients and the wider public.

Please click here for a copy of the Investor Presentation.

Investment Highlights

  • Largest integrated security services company in WA following the integration of two contracted acquisitions
  • Established business with diversified and contracted client base across Australia and NZ.
  • Roll-up growth strategy within a highly fragmented industry
  • Growth potential supported by a fully accredited A1 control centre with capacity for substantial expansion (~5 fold) providing infrastructure for growth at a relatively fixed cost base
  • Expansion of service offering by providing monitoring to people via a personal duress application

Management

Current EAF Directors will resign on completion of the reverse takeover (RTO) by Threat Protect. They will be replaced with Threat Protect co-founders Demetrios Pynes  (Managing Director elect) and Paul Ferrara (Executive Director elect). The position of Non-Executive Chairman will be taken up by Derek La Ferla who is currently Chairman of Sandfire Resources and OTOC.

Indicative Timetable

Opening of Public Offer

Friday 24th July 2015

General meeting

Wednesday 5th August 2015

Close of public offer

Wednesday 12th August 2015

Completion of consolidation

Thursday 13th August 2015

Completion of acquisition and issue of shares

Thursday 13th August 2015

Dispatch holding statements

Friday 14th August 2015

Expected date of re-quotation on the ASX

Monday 17th August 2015

Note: Dates shown in the table above are indicative only and may be varied. The Company reserves the right to vary the Closing Date without prior notice, which may have a consequential effect on the other dates. Applicants are therefore urged to lodge their Application Forms as soon as possible.

Summary

The backdoor listing of Threat Protect  (via RTO of EAF) and Public Offer at 2 cents per share provides investors a low priced, leveraged entry into an established business with tangible growth aspirations, via both acquisition and organic growth. Although not without some risks we see this as an investment opportunity that will attract plenty of attention in an increasingly security conscious world.

We encourage you to read and understand the Terms of the transaction and the prospectus, prior to applying for shares. If you would like any additional information please do not hesitate to contact your Argonaut Advisor, or Chris Hill on +61 (8) 9224-6830.


 For legal reasons, the information and electronic Prospectus provided by this website is available to persons accessing this website from within AUSTRALIA ONLY.  If you are accessing this website from anywhere outside Australia, please DO NOT download the electronic Prospectus accessible through this website.

This Prospectus does not constitute an offer of securities in any jurisdiction where, or to any person to whom, it would not be lawful to issue the Prospectus or make the offer.  It is the responsibility of any applicant outside Australia to ensure compliance with all laws of any country relevant to their applications, and any such applicant should consult their professional advisers as to whether any government or other consents are required, or whether any formalities need to be observed to enable them to apply for and be allotted any securities.

No action has been taken to register or qualify the securities or the Offers or otherwise to permit a public offering of the securities in any jurisdiction outside Australia.

If you agree to these terms and would like to view the prospectus, click here.