XRF Scientific exercises call option to acquire remaining 50% of Orbis Mining Pty Ltd

XRF Scientific Ltd (ASX: $XRF) has exercised a Call Option to acquire the remaining 50% of Orbis Mining Pty Ltd. The settlement of the Call Option shares is conditional on the satisfaction or waiver by 31 December 2024 of various conditions precedent, including the Company obtaining third-party approvals.

Executive Commentary on Orbis Acquisition

Orbis has shown significant growth since XRF acquired its initial 50% shareholding in September 2021. The unaudited revenue for FY24 stands at $5.8m with a profit before tax of $1.7m. This acquisition allows XRF to achieve 100% ownership of a low-risk, bolt-on acquisition with highly complementary products. It also provides further diversification of revenue into the gold mining sector. We are excited about the potential this acquisition brings and look forward to integrating Orbis fully into our operations.

Summary of XRF Scientific's Orbis Call Option Exercise

XRF Scientific Ltd (ASX: $XRF) has exercised a Call Option to acquire the remaining 50% of Orbis Mining Pty Ltd, conditional on the satisfaction or waiver by 31 December 2024 of various conditions precedent. Orbis, a manufacturer of laboratory jaw crushers, has experienced significant growth since XRF's initial acquisition. The unaudited revenue for FY24 is $5.8m with a profit before tax of $1.7m. The acquisition price for the 50% shares in Orbis is $3.91m, with the acquisition expected to settle by 31 July 2024. An earn-out payment equivalent to 50% of the profits after tax for the 2025 financial year is also part of the agreement. XRF confirms positive sales conditions during the June 2024 quarter and is scheduled to release its FY24 full-year statutory accounts on 20 August 2024. The acquisition of Orbis presents an opportunity for XRF to further diversify its revenue and expand its market presence in the mining sector.