Jackspeed Corporation, which listed as a specialized leather seat cover supplier, is undertaking a $10 million reverse takeover of a digital marketing business.

The company, which has since sold off its original core business in early 2020 to its executive deputy chairman and CEO Yap Kian Peng for $48 million, is currently a cash company.

The RTO deal will be funded by issuing new Jackspeed shares tentatively set at 3.2 cents each at a number to be finalized, subject to further adjustments.

Cushman & Wakefield VHS Pte Ltd will be appointed as the independent valuer to for the deal and the report will be sent to Jackspeed shareholders in due course.

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When the deal is completed, the vendors of the target holding the enlarged share base of Jackspeed, will be the controlling shareholders.

According to Jackspeed’s SGX announcement on July 4, the largest shareholder of the vendor is one Futurestream Networks Co Ltd, with a stake of 83.01%.

For FY2020 ended Dec 2020, the target group reported earnings of US$1.27 million, an increase from the preceding year’s US$456,000. FY2020 revenue was US$45.6 million, up from FY2019’s US$23.5 million. Back in FY2018, earnings was just US$2,000 and revenue was just US$13.1 million.