Working Systems Solutions takes roundabout way to growth

Working Systems Solutions, the West Australian developer of healthcare systems, is following a unique path in its quest to grow by acquisition. A statement released by the company claimed it has identified a number of possible acquisition targets both in Australia and overseas. The common denominators in the targets are that their growth has been inhibited by lack of capital, their market value is lower than their actual value, and their business can complement the activities of WSS.

Working with Irish adviser Clanwilliam Consulting, WSS is planning how it should implement the grand strategy, and the two have come up with a scheme involving a reverse takeover with delisting and twist.

It appears that WSS wants to merge with a US listed company, which has not yet been named, and then to raise $US10 million underwritten by Irish group Merrion Corporate Finance. It is understood WSS shares would be taken off the ASX but the merged company will subsequently undertake a dual listing on the NASDAQ and the ASX.

"A merger of this type will enhance the company's ability to raise funds for further acquisitions by enabling it to better access international capital markets," the company statement noted. "Naturally such a merger will be subject to shareholder approval."

WSS justified the complicated move by noting that a successful merger and capital raising will enable it to expand its health services domestically and internationally, which in turn will increase its profitability and capitalisation.

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