MINREX RESOURCES LIMITED Exploration company, MinRex Resources NL (ASX: MRR) (MinRex) has launched its prospectus to raise capital to finalise its acquisition of Hello Real Estate Limited (Hello), which will lead to Hello listing on the ASX.
MinRex is seeking to acquire 100 per cent of the issued share capital of Hello, with the capital raising involving the offer of up to 46.66 million shares at an issue price of $0.15 each to raise a minimum of
$5 million and a maximum of $7 million.
The capital raised will be used to further develop, expand and promote the Hello business model and to finalise the development of Hello's technology.
Simon Durack, Executive Director of MinRex, said: 'The real estate industry is changing quickly and this transaction will enable MinRex to become a disruptor in the Australian property market, using technology and partnerships to offer consumers a trusted, transparent and innovative new way to buy and sell residential property.'
Phil Horan, Founder of Hello, said: 'Hello offers a unique service in the Australian real estate market, providing a viable cost-effective alternative to traditional real estate agents and purely online real estate services and this deal is a great opportunity for Hello to further develop and become a significant player in the market.'
Hello is a licensed real estate business based in Australia, offering clients a fixed-fee service to sell their property, supported by a team of professional service providers, covering all aspects of selling, web listings, advertising, negotiation, conveyancing, settlement services and professional mentoring.
Hello's fixed fee structure offers savings for properties sold above a certain price point when compared to real estate agents who apply a commission based pricing model (typically around 2 per cent), with resultant fees varying with the value of the property sold.
For example, a client who sells a property in the metropolitan area for $1,000,000 will pay $9,990 (incl. GST) with Hello, which includes a range of services such as photography, advertising and promotional material, valuation and property styling, and $22,000 with a real estate agent applying a 2.2 per cent (incl. GST) commission rate. In this instance, Hello offers a saving of $12,010 or approximately 50 per cent.
This disruptive real estate model, underpinned by technology and partnerships in real estate sales, marketing and finance, currently operates in NSW, South Australia, Victoria and Queensland, with licence applications under way in the ACT and Western Australia.
The prospectus for the offer can be downloaded from the MinRex website at www.minrex.com.au. A hard copy can also be requested by phoning the company's share registry Security Transfer Registrar on (08) 9315 2333.
Anyone considering investing in the offer should read the prospectus carefully and in its entirety before deciding whether to apply for shares. Anyone who wants to apply for shares will need to complete the application form accompanying the prospectus.
Indicative closing date for the share offer is 11 January 2016.
ISSUED FOR: MINREX RESOURCES NL - http://www.minrex.com.au/
INFORMATION: TEL: +61 8 9486 8806, simondurack@minrex.com.au
ISSUED BY: HILL + KNOWLTON STRATEGIES, MARCHA VAN DEN HEUVEL
TEL +61 2 9286 1226 OR +61 468 960 457, marcha.vandenheuvel@hkstrategies.com
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