Scrip the currency for Firstfolio broker roll-up

Consideration for the purchase of Premium Mortgage Group and Blue Coast Finance will involve no cash, instead constructed by scrip and performance based options.

Firstfolio CEO Mark Forsyth said there were another nine companies short listed as targets. "It's a deal by deal basis, but my preference is for a business to take scrip as a significant proportion of the consideration, as I want them to be part of the future and continue building."

Blue Coast has five owned brokers and a number of associated brokers, with Premium more established with eight owned brokers and as many associated brokers. It has offices in Townsville and is looking to establish more offices in Mackay and Cairns.

The purchase price for Blue Coast Finance is two million Firstfolio shares and one million options exercisable at 7.5 cents per share on or before 31 December 2008. A further two million options may be issued to Blue Coast subject to business performance.

Premium Mortgage Group have a slightly more complicated purchase price, which requires Premium to achieve settlements of $25 million before Firstfolio will issue 1.5 million shares, subject to voluntary escrow. A further 1.5 million performance rights may be issued on attainment of certain performance criteria by Premium.

The Firstfolio share price has traded in a 52 week band between five cents and nine cents, closing lower yesterday at five cents on low volume. The market capitalisation of the listed entity is around $20 million.