STS said the acquisition was consummated pursuant to the terms of a letter of intent (LOI) dated April 18, 2011, which supersedes the previously announced LOI of 8 September 2010, between STS, Probenefit and Rentier Fideicomiso Financiero, stakeholders of the Naxo’s.
The new LOI gives STS until 19 October 2011 to complete the purchase of additional shares of Nexo which would give STS 60% ownership of Nexo.
According to the STS, the terms of the new LOI are the same as the previous LOI except that the new LOI contemplates the purchase of the Nexo shares by STS in two steps.
In the first step, which has been completed pursuant to a recently executed stock purchase agreement, STS purchased 12.2% of Nexo for cash consideration of $1m and the issuance of nearly 2 million newly issued restricted shares of STS to Rentier.
In the second and last step, STS will purchase 30.5% of Nexo for cash consideration of $2.5m and the issuance of above 4 million newly issued restricted shares of STS to Rentier, all pursuant to a yet to be entered into stock purchase agreement.
STS said the financing for the acquisition was obtained through a private placement of nearly 3 million newly issued restricted shares of the corporation, which generated over $1m in cash proceeds.
Southern Trust Securities Holding CEO Robert Escobio said the purchase of additional shares of Nexo and the completion of the revised LOI represent STS’s continued plan to gain majority control of Nexo.
Southern Trust Securities Holding is a financial services company offering securities brokerage, investment banking, asset management and private wealth management for retail and institutional, corporate, and high-net-worth clients primarily in Latin America and Asia.
