WELLINGTON, March 25 The New Zealand based cloud
storage company Mega Ltd, founded by Internet entrepreneur Kim
Dotcom, plans a NZ$210 million ($179.4 million) listing on the
local stock exchange through a reverse takeover of a local
investment shell company.
TRS, an inactive investment company, said on
Tuesday it has a conditional agreement to buy Mega Ltd through a
share issue to Mega shareholders, which will result in them
holding 99 percent of TRS.
The plan will see the issue of 700 million new TRS shares at
NZ30 cents each, after which there would be a share
TRS currently has more than 1.1 billion shares on issue,
which last traded at NZ$0.002 - a fifth of one NZ cent - valuing
the company at NZ$2.2 million.
Mega Ltd, founded in 2013 by Dotcom and several other people
involved in the now closed Megaupload, offers encrypted, cloud
based data storage. It claims about 7 million registered users.
Official records show its shareholders include Dotcom's
wife, through a trust, with a 26 percent stake. Dotcom is not
listed a shareholder nor a director, but on the Mega website is
called principal strategist.
Dotcom, who also goes by the name of Kim Schmitz, is
fighting a bid to extradite him to the United States to face
charges of copyright infringement, money laundering and
U.S. authorities allege the Megaupload website, which was
shut down in 2012, cost film studios and record companies more
than $500 million and generated more than $175 million in
criminal proceeds by letting users store and share copyrighted
material, such as movies and TV shows.
Last week, New Zealand's highest court dealt Dotcom a blow
by knocking back an appeal for access to all the evidence on
which the extradition application is based.
TRS said it had scrapped a 2013 plan to be used as a listing
vehicle for Cornerstone Mineral Corporation Ltd, which was
planning a mining project for silica and gold in the south of
($1 = 1.1707 New Zealand dollars)
(Reporting by Gyles Beckford; editing by Tom Brown)