Zortrax on its way to becoming a public company through a reverse takeover of Corelens

Zortrax, the most popular Polish company providing solutions in the field of additive technologies, has signed a letter of intent with Corelens, a company listed on NewConnect, which focuses on providing specialized solutions for the ophthalmic industry. The letter of intent is aimed at merging both entities, as a result of which Zortrax would obtain the status of a public company.

As we read in the announcement, “[…] the parties express their will to start and conduct the process aimed at the merger of Corelens (as the acquiring company) and Zortrax (as the acquired company) (” Merger “) and for this purpose have decided to start negotiations and other activities aimed at establishing of the essential terms of the Merger ”. The provisions of the letter of intent are valid until October 31, 2020.

If the agreement is signed by that time, the merger is to be effected by transferring all Zortrax assets to Corelens in exchange for the shares that Corelens will issue to Zortrax shareholders. As part of the merger issue, Corelens will issue to Zortrax shareholders at least 112,681,666 (one hundred twelve million six hundred eighty one thousand six hundred sixty six) shares, at a unit price not exceeding PLN 1.26. The issue will be made with the exclusion of the subscription rights of the existing Corelens shareholders. After the issue, the existing shareholders of Zortrax will control at least 97 percent. Corelens shares.

Mariusz Babula, Vice President of the Management Board of Zortrax, says that the WSE (Warsaw Stock Exchange) is a natural environment for companies with a technological and export profile, such as Zortrax. By obtaining the status of a public company, the company meets its obligations towards minority shareholders, and entering NewConnect will be a catalyst for further development. The company is still working on diversifying its distributor network and expanding its product portfolio towards a range that guarantees the highest possible profitability.

Przemysław Krzemieniecki, Chairman of the Supervisory Board of Zortrax, emphasizes that the priority is to finalize the process as quickly as possible. “Reverse acquisition” transactions are standard on the capital market – it is worth mentioning the entry of the spectacularly successful CD Projekt on the stock exchange.

The merger would result in Zortrax obtaining the status of a public company. The current activities of Corelens would cease by selling the company’s assets or divesting an organized part of the enterprise by the end of 2020.