Qoria (QOR AU) has announced a scrip merger with unlisted Boston-based Aura, to form an enlarged digital safety play under the ASX-ticker AXQ.
Scrip terms - 17.2 QOR shares per AXQ share - will result in QOR shareholders holding 35% of the enlarged entity on a fully diluted basis.
A merger makes sense. Both companies sell software to schools and parents offering “digital seatbelts”. There may, however, be a question mark over the reliability of the indicative Offer price.
The Trade:
Quirky, but ostensibly a fair deal.
It’s not clear how you’re going to hedge this.
If you like the terms, play the back-end and buy Qoria outright.