Mega listing deadline given another extension

The proposed backdoor listing for file storage and encryption firm Mega has been given another deadline for regulators to go through documents outlining the offer to shareholders of TRS Investments, the proposed vehicle for the deal.

Stakeholders in TRS and Mega have agreed to extend the date to complete the transaction in another four weeks, by Nov. 28, to let the regulators scrutinise the TRS notice of special meeting, profile and independent adviser’s report on the transaction, TRS chairman Keith Jackson said in a statement. It had originally looked at a June 30 deadline, before extending that to Aug. 31 and then Oct. 31.

Once the documentation is finalised with the regulators, it will be circulated to TRS shareholders who will vote on whether to approve the deal to buy Mega for $210 million by issuing 700 million shares at 30 cents apiece to Mega shareholders, after undertaking a 148 for 1 consolidation. Mega shareholders would own 99 percent of TRS, which would adopt Mega as its name.

Mega was launched by internet entrepreneur Kim Dotcom in 2013 to replace his Megaupload empire, which was frozen after the mogul’s high profile arrest at the behest of the US Federal government. He has since stepped back from the firm to fight his extradition and to bankroll the Internet Party, which failed to gain seats in Parliament at this month’s general election.

The firm has since been distancing itself from Dotcom, while featuring prominently in his ‘Moment of Truth’ election stunt, which used encrypted video links. Mega announced Graham Gaylard as chief executive last month, the third since Dotcom’s departure.

Mega raised US$7 million to help fund the listing, though 18.8 percent of its shares have been frozen by a restraining order over the assets of Auckland business William Yan, formerly known as Bill Liu.

Shares of TRS were unchanged at 0.3 cents apiece today.

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