Vow Financial is set to benefit from a transaction between an ASX-listed mining company and an expanding real estate group.
Minrex Resources has entered into a memorandum of understanding to acquire 100 per cent of Hello Real Estate for $6.75 million in issued capital.
The two parties are currently taking part in an exclusive due diligence process that will end on 31 July. Minrex will change its name to Hello Real Estate once the deal is complete.
Hello founding director Phil Horan told sister publication Real Estate Business that this deal is a ‘reverse takeover’, which will give Hello Real Estate a back-door entry to the Australian Securities Exchange.
Minrex currently has two leases and will exit the mining business once the reverse takeover is complete, according to Mr Horan.
Phil Horan, founding director of Hello Real Estate, said the group has been working with Vow over the past few months on a finance arm which will be branded as “Hello Finance, powered by Vow”.
“Vow brokers will work hand-in-hand with our licensees, so if you’re a licensee in a particular area, you’ll have a dedicated Vow broker who will have the Hello Finance collateral when they go to see potential buyers,” he said.
Vow Financial CEO Tim Brown told Mortgage Business that the new deal will mean brokers will receive more “quality” leads from the aggregator, and will also allow them to become involved in the property-selling process with clients.
Mr Brown said the deal with Hello Real Estate will not affect Vow’s existing partnerships with RE/MAX (through Australian Property Finance) and Elders Home Loans, and revealed that the aggregator will be announcing another partnership with a real estate group in the coming weeks.
According to Minrex’s most recent annual results, the company generated $57,000 of revenue for the 12 months to 30 June 2014 and posted a net loss of $437,000.
The company’s website describes Minrex as a speculative exploration company looking for gold and tin in Western Australia and Tasmania.