Recruiter.com Group Inc. has announced a $2.25 million financing by Montage Capital to help fund the automation of its on-demand recruiter service.
"We are excited to develop a working relationship with Montage Capital," said Evan Sohn, CEO of Recruiter.com, in a statement.
"The structure of this debt financing offered a strong alternative to immediate equity financing, especially during this particularly difficult environment for small issuers. We look forward to driving our vision forward with a strong financial partner."
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In addition to automating its on-demand recruiter service, the New York-based company plans to use funds to move forward with its new strategic plan, and for general working capital purposes.
The loan carries a 12.75% interest rate, with interest-only payments until July 2023. In connection with the loan, Recruiter.com issued Montage Capital 706,551 warrants at a $2 exercise price.
"We are highly conscious that it has been a challenging year for many in the capital markets, and certainly for our shareholders,” Sohn told investors.
“We have therefore developed a framework and strategy to unlock greater value for our shareholders. Financing with Montage Capital was the first step in our new strategic plan to achieve profitability and increase shareholder value, the details of which will be announced in the coming weeks."
Montage Capital offers growth loans as a form of hybrid capital, having both debt and equity features.
Michael Rose, managing director at Montage, said the firm partners with “innovative companies with high growth prospects, capital-efficient business models, and exceptional executive leadership.”
“We are excited to participate in the future of talent acquisition with Recruiter.com, using a structure designed to accelerate growth while minimizing dilution to shareholders,” Rose added.
Recruiter.com is an on-demand recruiting platform providing flexible talent acquisition solutions that scale from start-ups to the Fortune 100.
Contact Angela at angela@proactiveinvestors.com
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