Candy Club (ASX:CLB) Raises $5 Million from Oversubscribed Private Placement
Candy Club Holdings Limited (ASX:CLB) has successfully completed a $5 million private placement from institutional and sophisticated investors.
At an issue price of 12 cents per share, 41.7 million fully paid ordinary shares have been taken up.
The $5 million take-up easily exceeded the Company's original target of $3.5 million.
Candy Club directors - Mr James Baillieu and Mr Kan Tang - together took $1.5 million of the placement.
The Company received strong demand from a large group of existing institutional and sophisticated investors in the capital raising round.
The Company also saw support from a number of new institutional and sophisticated investors investing in Candy Club for the first time. As a result, the Company received well in access of $5 million, ahead of the initial target of $3.5 million, and had to be scaled back to accommodate demand.
"As mentioned in the September Quarterly Activities Report, we have many exciting growth initiatives that are well underway," said Candy Club Founder and CEO Keith Cohn.
"These include scaling our customer acquisition marketing campaigns, new product development, new business development partnerships with sales partners and a robust sales pipeline."
"The strong demand for our equity shows the confidence our investors have in us and I am convinced that we will be able to bring Candy Club to new heights."
The issue price of 12 cents per share represents a 4 per cent discount on the previous closing price (12.5 cents) on 20 November 2020.
The funds raised will be used to increase the Company's inventory levels to support accelerating growth and for working capital.
"I am very happy with the results Candy Club achieved in this private placement. It is a very successful one that means more room for expansion," said Candy Club Chairman James Baillieu.
"I can't wait to see what is in store for us, especially in 2021 after experiencing a very challenging 2020."
"Every business has no doubt been impacted by the COVID-19 pandemic, and that is why I am delighted to see how Candy Club not only weathered this storm but also recorded exponential revenue growth. And with this additional investment, there will be more growth for us from here on."
The issue of 29.2 million shares to non-related party participants under the Placement is expected to occur on or around 3 December 2020 and the balance of 12.5 million shares collectively will be issued to Company Directors Mr James Baillieu and Mr Kan Tang subject to shareholder approval at a general meeting to be held in January 2021.
Candy Club Holdings Limited Keith Cohn Managing Director kcohn@candyclub.com Justyn Stedwell Company Secretary justyn@stedwell.com.au Civic Financial Communications Mark Hawthorne Director mark.hawthorne@civicfinancial.com.au +61 418 999 894
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