Listed shell company RetailX is back in business - as an IT company.
In January, Auckland stock broker Brett Wilkinson spent $30,000 bailing out the former retail management company, which traded on the stock exchange's alternative board, the NZAX.
RetailX avoided being put into liquidation last month, but three other
companies in Mark Taylor's business empire, including the Building Depot, are being wound up.
RetailX will pay $12 million to previously unknown company Plus SMS in the form of shares valued at 5c each. Then, RetailX will issue another 30 million shares at 5c each to fund operating costs of Plus SMS.
After the deal has gone through - which requires support of RetailX shareholders - the company will be listed on the NZAX with its new name of Plus SMS.
Yesterday's stock exchange announcement said Taylor would resign as a RetailX director after the transaction. Wilkinson said he had not been involved in putting together the deal.
It is related to last month's appointment of Jim Bracknell to the board of RetailX as non-executive chairman. He was head of IT and communications company Newcall Group, which became a shell that was taken over last year by residential property investor Blue Chip NZ.
