Join our daily newsletter At The Bell to receive exclusive market insights
- RooLife Group (RLG) confirms the receipt of $1 million placement funds from China Cross Border Trading Group (CCTG) into its trust account
- The proposed placement comprises of around 38.4 million new fully paid ordinary shares at an issue price of 2.6 cents and roughly 4.8 million unlisted options
- The shares are to be voluntarily held in escrow for a minimum of six months following issue and are subject to shareholder approval on December 30
- The deal structure will allow RLG with expanded access and expertise across general trade sales in China
- RooLife Group shares are down five per cent to trade at 1.9 cents at market close
RooLife Group (RLG) confirms the receipt of $1 million placement funds from China Cross Border Trading Group (CCTG) into its trust account.
The proposed placement comprises of more than 38.4 million new fully paid ordinary shares at an issue price of 2.6 cents.
Further, approximately 4.8 million unlisted options will be issued, exercisable at five cents before November 30, 2024.
The shares are to be voluntarily held in escrow for a minimum of six months following issue and are subject to shareholder approval on December 30.
The proposed placement to CCTG is in conjunction with its appointment to market, sell and introduce RLG’s products to sales and retail channels in China.
In addition to the proposed placement, RooLife has agreed to an incentive-based distribution agreement in which for every $1 million in sales revenue which CCTG provides to RLG between January 1 to December 31 2022, CCTG will be entitled to earn one million options at five cents each before November 30, 2024.
The options will be capped at 30 million and will be subject to shareholder approval on December 30.
However, if CCTG provides RooLife with up to $30 million in revenue in the first 12 months, it may earn up to 30 million options.
The deal structure will allow RLG with expanded access and expertise across general trade sales in China.
RooLife Group shares were down five per cent to trade at 1.9 cents at market close.
