Shoply Limited (ASX: SHP) has received commitments from professional and sophisticated investors to subscribe for 60 million shares at $0.03 to raise $1.8 million, with a 1 for 2 free attaching option exercisable at $0.035 by 31 July 2015.
In conjunction with the placement, existing shareholders will be able to participate on the same terms via a 1-for-5 rights issue, to raise an additional $1.8 million, fully underwritten by Patersons Securities.
Funds raised from the capital raising will be used to complete the acquisition of Your Home Depot for $2.85 million in cash.
Your Home Depot is an Australian online home-wares and appliance retailers, generating about $12.9 million revenue in fiscal 2013 with an EBITDA of $1 million.
Your Home's assets include its domain name, website, a database of about 130,000 retail and commercial clients, stock on hand valued at $1.5 million and a leasehold warehouse facility near Sydney.
With a further $2.4 million cash boost likely from the exercise of Shoply's existing listed options, that have a strike price of $0.015 expiring at the end of June, Shoply is well positioned to deliver on future growth plans.
Shoply's over-subscribed capital raising shows confidence in its organic and acquisitive growth strategy.
The company also hinted that further acquisitions in the sector are on the cards.
Shoply shares are trading today at around $0.033, and the company is capitalised at around $8 million.
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