The investment vehicle for Ron Brierley’s investment company MidEast Minerals, nowadays known as Tomorrow Investments, has announced that it is to take a 45 percent stake in 131shop.com.au.
Tomorrow Investments becomes the second former mining company to buy into the e-tailing vehicle, which also lists Eastern Mining as a major shareholder. The company acquires 45 percent of the retailer, being issued 14 million shares. The shares, exercisable at 10 cents per option, over a seven year period, come in addition to Tomorrow subscribing for 31 million partly paid shares and an additional 45 million shares, paid to $0.001 apiece.
Tomorrow debuted in the technology sector last year when it announced a 53 percent stake in internet infrastructure provider VivaNet. The company, which had relisted late last year after achieving a back-door listing through the shell of former miner Fortuna NL was regarded as a smart move by Wayne Bos.
Bos, who has acquired a reputation for astute judgement of the Internet business after his successful transformation of Sausage Software into one of the better-performing stocks in the Australian space, took on the ailing retailer as Tomorrow’s second significant investment.
131shop.com.au was regarded as one of the worst performing stocks of the last financial year, with the retailers share price dropping to just 20 percent of its share issue price. Yet the retailer can expect some relief from its new investor, with Bos suggesting that investments in technology companies and a refocussing on technology will see the retailer benefit from Tomorrows investment.
Bos has maintained his positive perspective on the local internet industry, saying last year, “There are a significant number of opportunities right now for investors to take strategic positions in companies that will play a central role in the way we communicate, transact and do business,” adding that “Quality, undervalued companies are the place to be.”