New booming sectors that reinvent shareholder wealth have attracted Australian mining minnows struggling in the resources downturn.
Astro Resources (ARO) has announced plans to acquire Hong Kong-based company Gymeny, which markets itself as a “holistic ecosystem”, in a $17 million scrip deal.
Astro informed its shareholders that Gymeny’s strategy was to enter into the fitness and lifestyle product and services market in Australia and overseas in South East Asia.
In the announcement, Astro chairman Jacob Khouri said “The proposed acquisition of Gymeny represents a significant transforming opportunity for the company and its shareholders as it offers a potentially large-scale sustainable business both in Australia and abroad.”
“Gymeny is designed so users only spend what they consumer, eliminating wastage and high levels of customer churn associated with traditional membership-based business models in the fitness services industry,” Khouri said.
An online market place that is accessed by users through virtual currency has been designed by Gymeny, which offers access cash savings on services and products available in the company.