As foreshadowed here in April, ex-dotcom shell Nettec has agreed a reverse takeover deal with Canadian resort developer Newfound.

The somewhat complex deal, put together by chief executive and former investment banker Edwin Richards, involves a new Dutch group Newfound NV taking over Newfound Group, a developer of upmarket resort 'villages' at Nevis in the Caribbean and on the Humber River Deer Lake in Newfoundland. Canadian entrepreneur Brian Dobbin, who created Newfound, will be chief executive of the new group, with Nettec chairman and key shareholder Jeremy White in the chair and Richards as chief financial officer.

Nettec is raising £20 million, half of it 'new money', at 65p involving a one-for-five share consolidation, to back Newfound NV, which will be the parent company of the new group. White and Richards have jointly contributed £5 million to this fund raising and a big Nettec holder has put in £3.3 million.

The deal could value Newfound at £95 million if certain targets are met. The initial payment is £55.9 million, in cash and shares.

Nettec shares, which traded above £1 in the late 1990s, now languish at 13p. The Newfound deal at least offers some hope of a revival.

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