Applications were received for 157,102,984 shares under the two for three rights issue priced at $0.005 per share. This included 157,102,984 options exercisable at $0.015 that expire on 30th June 2018.
Proceeds will also be used to repay bridging funding and potentially increase its existing positions in other assets in the company's present investment portfolio.
Bisan is targeting the smartphone trade-in market which is forecast to expand from 53 million units per annum in 2013 to 257 million units per annum by 2017.
Traded-in smartphones are professionally graded and categorised to most efficiently meet consumer demand for affordable regenerated second hand smartphones.
Bisan has set up and owns 100% of myGeneration Smartphones Pty Ltd (myGeneration) in Australia, which in turn owns 100% of myGeneration Smartphones Ltd Hong Kong.
It will provide US$300,000 in working capital to myGeneration Hong Kong to commence trading second hand and regenerated phones.
The company has executed service agreement with Yehuda Shmaya Szender and his team, who are experienced second hand smart phone traders.
MyGeneration Smartphones Limited targets annualised sales of between US$24 million and US$48 million in professionally graded second hand brand smartphones. China and South East Asia are the initial target markets.
Should the contracting team achieve US$48 million in annualised sales turnover at a 10% margin, they will be issued with a 70% equity in myGeneration Smartphones Ltd Hong Kong.
If the team meets the lower US$24 million annualised sales turnover target at a 5% margin, it will be issued 60% equity in myGeneration Smartphones Ltd Hong Kong.
Under the binding Memorandum of Understanding, the contracting party also has 30 days to decide whether to vend their interest in MyGeneration Smartphones for equity in Bisan Ltd for the same percentages of equity (60% or 70% depending on performance targets reached).
The vend is subject to capital raising of between $3 million and $5 million as well as all shareholder and regulatory and statutory approvals.
Bisan may be required to re-comply with Chapters 1 and 2 of the listing rules.
Bisan is also the largest shareholder with a 16.06% interest in P-Fuel Limited, which has developed a waste oil to fuel technology.
Earlier this year, P-Fuel was granted a patent in Russia for its technology, following on the grant of a U.S. patent for the conversion of certain waste plastics into fuel that was granted in 2014.
P-Fuel has an existing plant that uses far infrared technology to convert waste plastic and waste oils into fuels including diesel.
The plant has been designed to produce transport quality diesel and if this can be achieved, P-Fuel believes it will be a world first.
The initial aim is to produce red diesel, which has a large number of fuel and energy applications. The plant is yet to be installed and commissioned at a suitable site.
Bisan's subsidiary Elken Tower Pty Ltd also holds 1,250,000 shares in Abilene Oil and Gas (ASX:ABL).
Raising the full amount sought under the rights issue demonstrates the support shareholders have in Bisan's move to develop its MyGeneration Smartphones business.
The regenerated smart phone business places Bisan on a potentially fast growth trajectory with growing cash flows and revenues.
While not as well known in Australia, Chinese and South East Asian markets offer a massive upside for myGeneration to capture market share and sell regenerated smartphones to its buyers in China, Dubai, India and other emerging markets.
In essence, Bisan becomes a "play" on not only growth in these markets but a proxy to tap growth in an established network of Asian resellers, low income households, and younger demographics.
Bisan also has investments in waste fuel and plastics to fuel technology company P-Fuel Limited; ASX-listed companies Abilene Oil and Gas, Black Star Petroleum, Kaboko Mining and Lemarne Corporation; as well as unlisted company Jernigan Commodities.
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