(ASX: MSC) - or soon to be known as PRM Cloud Solutions - is transitioning into the hot cloud sector, and is set to tap investor demand for exposure to the space by offering a prospectus to raise up to $5 million.
MSC is acquiring PRM Cloud Solutions, which has created mobile and social applications tailored toward the mining, oil & gas and construction sectors.
The offer is for 15 million shares at $0.20 to raise a minimum of $3 million, with oversubscriptions of up to a further 10 million shares to raise up to an additional $2 million.
Key timeline:
- Opening Date of the Public Offer: 10 April 2014.
- Shareholder Meeting: 24 April 2014.
- Closing Date of the Public Offer: 30 May 2014.
- Issue of Shares under this Prospectus and Completion: 13 June 2014.
- Quotation of Shares on the ASX: 18 June 2014.
PRM Cloud Solutions is one of the pioneers in cloud application development in Australia, and has grown from a one-person startup to a skilled and experienced application development team.
The company has grown to have operations across three continents, and has a blue-chip client base including , RAC, Macmahon, BGC, Downer, Seven West Media and Serco.
PRM Cloud Solutions: business model
In addition to developing specific applications, to date PRM¡¯s business has been underpinned by its consulting services team which provides technical best practice, management consultancy services, change management, technical expertise and support, all specifically related to the Salesforce.com suite of products.
The consulting services division will continue to provide a stable business unit to complement PRM¡¯s development of further specific applications.
Adding to PRM's credentials, the company holds every available certification, including one of only three prestigious Salesforce.com Technical Architect Certifications held in Australia.
Highlighting the size of the potential market, global technology leader Salesforce.com has a market cap. of US$36 billion, with its the Force.com platform used by over 100,000 companies worldwide - and is considered one of the most trusted and secure development platforms available.
PRM already has a strong relationship with Salesforce.com in Australia.
Compliance Chapters 1 and 2
MSC is currently obtaining all necessary regulatory approvals and meeting all regulatory requirements as are required to give effect to the transactions contemplated by the acquisition.
This includes the company receiving a letter from ASX regarding re-compliance with Chapters 1 and 2 of the Listing Rules of ASX on terms which the company believes are capable of satisfaction acting reasonably.
Analysis
With the cloud computing sector set to grow over the next five years, MSC has positioned itself to leverage this opportunity by being an early participant in this space.
Spearheading PRM¡¯s growth over the next period will be its latest application product, EnverroTM, which was developed by PRM Cloud Solutions to solve the challenges surrounding workforce mobilisation in the resources sector.
MSC is currently one of the lightest valued ASX stocks with cloud exposure, with this offer set to increase investor interest.
With the cloud business, it is surely a matter of MSC in the 'right place' at the 'right time', with the deal providing a platform for value accretive growth. |
