As foreshadowed here in September, maritime telematics specialist Marine Tracking is joining AIM through a £1.5 million reverse takeover.

Under the deal, AIM shell XSN, which as Sports Network once housed some of the interests of boxing promoter Frank Warren, is offering shares to buy Shoreham-based Marine Tracking, a hitherto private company whose proprietary technology can tell a ship or fleet owner where a given vessel is, if it is moving and in what direction and in what condition it is. If the deal goes through, XSN holders will have 30 per cent of the combined company, which will be called Marine Tracking and boast cash of £700,000 and an AIM tag of £2.6 million.

Marine Tracking, whose technology is reputed to be used by Royal Caribbean Cruises and Roman Abramovich among others, is keen to exploit opportunities in the 28-million-vessel international commercial and recreational shipping markets, driven by current security legislation and heightened concern to safeguard assets. But lack of cash has hampered growth.

Steered by former ship’s captain Stuart Nicholls, proposed as chief executive for the enlarged group, Marine Tracking lost £489,333 last year on £393,134 turnover. The company was helped by financial guarantees from, among others, entrepreneur Duncan Lipscombe, boss of bombed-out investment concern and Marine Track shareholder Zyzygy and now proposed as non-executive director of the enlarged company.

Now, with £700,000 cash from XSN and ‘the added credibility of a public company’, funding growth should be easier, argue directors. It is intended that XSN’s present chairman David Elstein, TV producer, former BSky luminary and ex-Channel 5 chief executive, remain as a non-executive director, while investment player James Butterfield, who has played a key role in bringing the two companies together, becomes non-executive chairman.

XSN shares, which had collapsed from 5.5p three years ago to 0.40p yesterday, have bounced to 0.80p on the deal, valuing the company at a mere £1.6 million and offering potential scope for further recovery.    

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