Hiremii Ltd (ASX:HMI) has received firm commitments from institutional, professional and sophisticated investors to raise $800,000 via a two-tranche placement of fully paid ordinary shares at an issue price of $0.0447 per share
The company will also undertake a share purchase plan (SPP) to existing shareholders aiming to raise an additional $800,000.
Furthermore, Hiremii has strengthened its management team with the appointment of Brad Kobus to the position of chief financial officer.
“Rapidly scale services”
Commenting on the capital raising, Hiremii managing director Andrew Hornby said: “Following the recent acquisition of Inverse Group Pty Limited, the company now has the opportunity to offer Hiremii’s unique AI-driven technology recruitment platform to a much larger client base, providing quicker and more cost-effective recruitment services to them.
“The funds being raised provide us with the additional capital to execute our growth plans and rapidly scale the services being offered to our clients.”
Placement summary
The placement will take place in two tranches:
Tranche 1: The issue of 14,325,125 shares to raise $640,333 (before costs) utilising the company's existing Listing Rule 7.1 and 7.1A capacity; and
Tranche 2: Subject to the company obtaining shareholder approval at a general meeting to be held on or before March 31, 2022, the issue of an additional 3,571,970 shares to raise an additional $159,667 (before costs).
Notably, the issue price represents a discount of 12.0% to the five-trading day volume-weighted average price of Hiremii's shares of $0.0508 before the trading halt on January 5, 2022.
Moving forward, settlement of shares under Tranche 1 of the placement is expected to occur on January 11, 2022, with shares issued under the placement to be ranked equally with existing shares in the company.
Indian Ocean Securities acted as lead manager to the placement.
Use of funds
Funds raised under the placement will be utilised for the expansion of the company's business and working capital purposes. Specifically, the proceeds will support:
- Continued marketing and business development to attract and acquire new labour-hire clients;
- The further development of the Hiremii technology platform via further research and development activities;
- Sales and marketing of the Hiremii technology platform to existing and new clients;
- Additional resources to expand operations into key new markets outside of Western Australia; and
- Costs of the offer and ongoing working capital.
Share purchase plan summary
Eligible shareholders will have the opportunity to acquire up to $30,000 in new shares via the SPP at an issue price comparable to the placement issue price of $0.045 per Share.
Importantly, the funds raised under the SPP will also be utilised for the expansion of the company's business and working capital purposes.
An SPP booklet containing further details of the SPP offer will be released on ASX separately and is expected to be dispatched to all eligible shareholders on or around January 19, 2022, being the date on which the SPP offer is expected to open.
Cadmon Advisory and Sandton Capital are acting as lead managers to the SPP.
New CFO
Brad Kobus is an experienced finance and commercial executive of ASX and US-listed businesses. He is a Chartered Accountant with a strong technology background and has worked in Australia, Asia and Africa in services and mining supplies businesses, both growing and established.
Notably, Kobus worked with Deloitte and qualified as a Chartered Accountant in Cape Town, and is completing a Masters in Predictive Analytics at Curtin University in Perth.
He was the CFO for ASX-listed Threat Protect Australia Limited (now Intelligent Monitoring Group), a security service provider from 2019 to 2021.
Prior to that, he was finance director at Donhad, a $100 million mining consumables subsidiary of US-listed Valmont from 2014 to 2018 and became the divisional finance manager for the $300 million Grinding Media and Fasteners Division when Donhad was acquired by Molycop, a global industry leader.
Hornby adds: "We are extremely pleased to welcome Brad Kobus as chief financial officer.
“Brad has served in finance, commercial and information system executive roles.
“He joins Hiremii’s executive leadership team at an ideal time to provide new financial and commercial governance and support as the company integrates its services, systems and processes following the acquisition of Inverse Group Pty Limited.”