SMTrack advances 9.52% on venturing into traceability bottling business in US

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KUALA LUMPUR (Oct 29): Loss-making technology solutions provider SMTrack Bhd advanced as much as 9.52% in the morning trade, lifted by news on its intention to venture into embedded traceability bottling business in the US by acquiring stakes in two firms here.

At 10:30 am, SMTrack has gained 9.52% or 1 sen to 11.5 sen, with some 1.91 million shares done. It rose to as high as 12 sen earlier.

Previously known as Smartag Solutions Bhd, SMTrack said in an announcement with Bursa Malaysia yesterday that it had entered into a joint venture (JV) agreement with Michael Maragh and Marc Thomas to acquire 100% in MRH Capital Inc and 75% in California Bottling Co Inc respectively, via a share swap.

This is in exchange for 40 million new shares or a 14.69% stake in SMTrack’s 94.01%-owned subsidiary Smartag International Inc (SII).

SMTrack said the transfer of shares is upon satisfactory completion of its due diligence on the two companies.

Upon completion of the proposed JV, MRH and California Bottling Co will become the subsidiaries of SII.