Wealth Today has 40 representatives under its Australian Financial Service Licence (AFSL) across Western Australia, South Australia, Victoria, NSW and Queensland, with approximately $200 million in funds under advice.
Spring Financial Group managing director Keith Cullen said the deal will strengthen the company and add “an experienced and dedicated team of head office personnel and authorised representatives” to the dealer group.
“We will benefit from an established infrastructure, while existing Wealth Today authorised reps and those joining the group can expect significantly expanded services including our proven range of marketing and lead generation programs, and established training and education services,” he said.
Settlement of the deal is expected to be complete within the next 14 days, Spring Financial said, with the company to pay a total consideration of $1.67 million to acquire all the issued capital from Wealth Today shareholders.
“The consideration will be satisfied by cash of $200,000; the issuance of $956,000 of shares in the company at an issue price of $0.15 per share (a 25 per cent premium to the last closing price, and reflecting the 90-day VWAP) for a total of 6.37 million shares; and the issuance of a two-year interest-free convertible note with a conversion price of $0.25 per share,” the company said.
“Shares issued to the vendors will be escrowed for two years.”