Starrex International Ltd (OTCMKTS:STXMF) Stock In Focus After Acquisition News
Yesterday Starrex International Ltd (OTCMKTS:STXMF) announced that it had inked a non-binding letter of intent with four entities from the United States which operate real estate operations in Arkansas, Texas and Florida. The four entities are being collectively called Magnolia Title. The letter of intent was dated for April 30, 2023.
Trading Data
On Monday, STXMF stock ended flat at $0.9558 with more than 1.20K shares, compared to its average volume of 93 shares. The stock moved within a range of $0.9558 – 0.9558 after opening trade at $0.9180.
Starrex International Announces Non-Binding Letter of Intent To Acquire the Magnolia Group of Companies
As per the transaction that Starrex International proposed, it would own 100% of those entities through the proposed acquisition. It was also announced that the total purchase price of Magnolia Title was going to be $18.6 million. However, there is possibility of more payments based on performance which would be determined by the parties later on.
The company also took the security of Magnolia Title so as to secure around $3 million that had been advanced already. The potential acquisition is going to be regarded as a ‘related party transaction’ with the Multilateral Instrument 61-101 in mind.
MI 61-101 stands for Protection of Minority Security Holders in Special Transactions owing to the fact that a shareholder in Starrex International would also have a hold of 24% of Magnolia Title. The loans could also be considered as related party transactions under the provisions of MI 61-101.
