Mega hunts listing via TRS deal

Mega hunts listing via TRS deal

The Mega file storage and data security firm founded by Kim Dotcom is looking for a backdoor NZX listing by striking an agreement with shell company TRS Investments.

Under the deal accounced to the NZX, TRS will buy Mega for $210 million, funded by a TRS issue of 700 million new shares to Mega's existing shareholders at 30c per share.

Mega shareholders will hold about 99 percent of the issued shares when the acquisition deal is complete, the announcement says. At that time, TRS will change its name to Mega.

The deal is subject to shareholder approval and other requirements, with TRS to post a Notice of Special Meeting to approve the transaction.

TRS has previously been seeking a reverse listing with Cornerstone Mineral Corporation (CMC), which has been looking to develop a gold and silica mining operation in Southland.

Mega has around seven million registered users, saying new user registrations exceed 20,000 per day. It expects to release encrypted instant messaging and encrypted chat and video conferencing in the second quarter of 2014, and is planning an encrypted email service.

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