Hong Kong-based EBT, founded and run by US entrepreneur Jim Reiman and Chinese colleague Zhang Ge, sees an AIM quote and bombed-out TTE’s £1.9 million of remaining cash as sources for funding its planned expansion in China. Under the proposed deal, TTE, whose original ambitions as a person-to-person betting exchange have not borne fruit, will issue £16.4 million in shares to the holders of EBT, which last year increased revenues 42 per cent to £17.4 million and cut its losses from £790,000 to £116,000, and another £3.3 million-worth to roll-over EBT options.
The company, which runs concessions inside hypermarkets and other large outlets stores, will be renamed EBT Mobile China. Reiman, who is set to emerge with 44.5 per cent of the new group, intends to grow it both within the Yangtse River region and other parts of the People’s Republic.
Evolution Securities is handling the deal, which will be put to TTE shareholders on 7 September. TTE’s boss Martyn Konig, who has negotiated the EBT deal and is to remain as a non-executive director of the new group, maintains ‘EBT gains access to the equity market while shareholders in The Trading Exchange will own a stake in an exciting growth company’.