To support the company's turnaround plans, it is to raise at least £10mln through a placing of shares at 2p a pop. Shares in Mysale closed at 4.75p last night.
The net proceeds of the placing will be primarily used to manage the group's short-term funding requirements and repay and restructure existing bank facilities.
Once debt-free, the company will be in a good position to accelerate its “ANZ First” strategy, making the transition to running a retail marketplace that is focused on Australia and New Zealand (ANZ).
The group said it plans to sell down nearly all of its “own-buy” stock, thus removing the requirement to have working capital tied up maintaining stock levels.
"During the last 12 months, the MySale business has contended with a series of significant challenges, particularly in its core Australian market. Following the recent period of restructuring and the proposed placing, I am confident that MySale will emerge as a leaner business, focused on delivering value via the 'ANZ First' strategy, with a unique marketplace platform providing a compelling counter-seasonal and clearance solution for domestic and international retailers," said Carl Jackson, the chief executive officer of MySale.
Chief among the challenges alluded to by Jackson was the change to goods and services tax (GST) regulation introduced down under in July 2018.
"The future offers significant opportunities which we will be well placed to capitalise on. We will be debt-free and expect to be cash-flow positive. We have a sustainable financial structure, a scalable proprietary technology platform, strong brand partners and a skilful and dedicated team,” Jackson said.
The group's founder and current executive vice-chairman, Jamie Jackson, is to call it a day after the forthcoming general meeting of the company.
Shares in Mysale were down 47.1% at 2.51p in early deals.