MCUBE Investments One Limited

INTRODUCTION

MCUBE was formed and incorporated in Namibia on 1 September 2016 as a non-operating cash entity, which will participate in the growth of the capital market of Namibia as a Capital Pool Company (“CPC”).

The Board listed MCUBE as a CPC in order to position the Company as an alternative vehicle for listing on the NSX and benefit from the growing need for access to the CPC listing process.

The intention of MCUBE is to maximise returns to shareholders by focusing on pursuing a viable Namibian asset (“Target”) via a Reverse Takeover.

RATIONALE

MCUBE is a holding company formed to undertake at least one Reverse Takeover in Namibia. The Company will be advised by the Executive Director, utilising the Board, which comprises individuals with extensive knowledge and experience of investments in Namibia. MCUBE intends to focus on those potential investment opportunities where it believes the Board has specific insights and can add long-term value. After listing, MCUBE will pursue an acquisition opportunity and negotiate a merger or purchase agreement to acquire a business (referred to as the “Reverse Takeover”).

High growth potential of existing Namibian enterprises

Namibia is a developing economy with high potential and stable economic growth. MCUBE intends to do a Reverse Takeover of an existing Namibian business that shows good growth prospects that in turn, will offer good investment returns for investors, albeit initially from a small base.

Population growth and urbanisation

The growth and development of the structured savings and capital markets in Namibia are expected to drive sustainable future economic growth that bodes well for Namibian business positioned to benefit from this future growth.

Bridging the gap between investment capital and the level at which it is needed

There is substantial demand for local investments to invest Namibian saving pools, and there is a demand for funds from Namibian businesses to finance their growth. Traditionally this growth was financed by debt financing from banks, but this, in turn, placed constraints on cash flow. 

Furthermore, access to the capital markets through an initial public offering (“IPO”) remains risky whereby an issuer may incur significant professional fees without any certainty regarding market sentiment and an ultimately successful transaction.

The CPC Reverse Takeover route significantly reduces costs, time and complexity for a company to be listed on the NSX.

PROSPECTS

Internationally CPCs continue to be an attractive vehicle for raising capital and an efficient pathway for privately-held businesses to become publicly traded on an expedited timeline compared to a traditional IPO, diverting less of management’s time to the transaction process and allowing management to focus on running the business.

MCUBE will look for a Target that meets its investment policy and restrictions.

In this regard, while no commercial terms have yet been discussed nor agreed upon, the Directors have identified a number of potentially Viable Targets, which meet the acquisition criteria for a Reverse Takeover listing.

As at 31 July 2020, MCUBE had not entered into any negotiations to conclude a Reverse Takeover.

ose who we believe really have the founders, team and drive to succeed.