Multistack International (ASX:MSI) announced a fundamental shift in its corporate trajectory, entering an agreement in principle to sell the entirety of its assets and liabilities to Hong Kong-based entity Willing Y.
The decision marks the end of MSI's current business operations, which the board of directors recently determined were no longer commercially viable following a period of persistent losses.
The board concluded that continuing the business in its present form would require a level of capital injection beyond the company’s current fund-raising capabilities.
As a result, MSI will divest its assets—including 100% of the shares in its subsidiary, Multistack Australia—to WYL.
The acquisition price will be structured as an assumption of MSI's liabilities by the Hong Kong firm, which specialises in the export of air conditioning components and is seeking to expand its footprint across Australia and New Zealand.
Upon completion, MSI expects to retain a modest net asset position in cash, intended to cover statutory and ASX-related obligations over the next year.
The transitional period will see the board actively scouting for new business opportunities to inject into the corporate shell.
The deal remains subject to definitive legal documentation, shareholder approval, and an independent expert's report to ensure compliance with the Corporations Act.
While MSI continues to operate as a going concern for now, the parties are targeting a final completion date by the end of June.