Embattled corporate Internet services company Cyberhost has acquired Ex-teq Realtime Systems, resulting in a change of control and focus at Cyberhost.
The R6.12 million purchase price of the software development and integration company is to be paid by the issue of 24.48 million shares.
The JSE-listed company, which intends to refocus itself as an application service provider delivering online services and products, has also announced that it plans to consolidate its shares on a 10-for-one basis.
After the consolidation, it will have just more than 8.38 million shares in issue.
Cyberhost announced earlier this year, after reporting a year-end 5.83c headline loss per share, that it had appointed a new board tasked with turning the company around.
"Cyberhost has hitherto carried on business as an Internet service provider delivering Web-hosting and connectivity services to its clients," the group says.
"This has become a highly competitive and overtraded segment of the Internet market." It adds that it has decided to refocus as an application service provider to improve available cross-selling opportunities.
The Ex-teq vendors have stipulated that they will accept payment in shares only if the Securities Regulation Panel agrees to waive the requirement that an offer be made to minorities.
Cyberhost is also planning a capital-raising exercise to provide working capital to fund its expanded operations.
It plans to raise R3.375 million by issuing a further 13.5 million shares at 25c each.
The Cyberhost share price was unchanged at 2c on the JSE this morning.
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