RPM Automotive Group Ltd (ASX:RPM) has successfully completed its capital raising with the receipt of tranche 2 funds of $2.7 million to raise a total of $5,141,350 before expenses.
The capital raising will enable the company to advance its operations together with providing working capital and funding for potential new opportunities.
“Set to pursue expansion plan”
RPM managing director Clive Finkelstein said: “We are delighted with the capital raising outcome and humbled by the support we have received from all concerned.
“RPM is now in a position to actively pursue its expansion plan and the board is confident that the company has the necessary funding to achieve its medium-term expansion targets.”
Traralgon Tyre Services acquisition
The company is on track to complete its proposed acquisition of Traralgon Tyre Services (TTS) after passing all necessary conditions as well as due diligence in late December 2020.
This acquisition will see TTS fit into RPM’s Repairs and Roadside Division, joining five existing businesses to gain operational synergies and the ability to offer more services to existing and new clientele.
Currently, the settlement is expected to take place on or by January 29, 2021, with handover and operational control to be effected on February 1.
Leveraging company experience
TTS is a market leader with 25 years’ experience in the supply, fit and servicing of passenger tyres, commercial tyres and industrial tyres.
The tyre group operates in a very similar space to Air Anywhere and Gully Mobile Tyres, RPM’s subsidiaries in its Repairs and Roadside Division.
It is expected that the businesses will be able to leverage off each other’s resources, expertise, and contracts to expose and take advantage of synergies and opportunities.
This is the division that is growing the fastest and the one RPM has identified as its growth channel and the focus of its short-term expansion program.