- Confectionary company Candy Club (CLB) has emerged from a trading halt after completing a $2.45 million private placement
- The company entered the trading halt on July 15, and today stated it would use the money to support its fast-growing business-to-business (B2B) strategy in the U.S.
- 19.6 million fully paid ordinary shares will now be issued to new institutional and sophisticated investors at 12.5 cents each
- Due to the strong support the placement received, applications had to be scaled back to accomodate demand
- The shares are expected to be issued on or around July 27
- Candy Club is up 3.75 per cent on the market this morning and shares are trading for 14.5 cents each
Confectionary company Candy Club (CLB) has emerged from a trading halt after completing a $2.45 million private placement.
The company entered a trading halt on July 15, and today stated it would use the money to support its fast-growing business-to-business (B2B) strategy in the U.S.
“The funds will be used to accelerate our successful B2B growth strategy and the strong institutional support is a welcome vote of confidence in our decision to pivot to the B2B segment in September 2019,” Founder and CEO Keith Cohn said.
19.6 million fully paid ordinary shares will now be issued to new institutional and sophisticated investors at 12.5 cents each.
This price represents a 10.7 per cent discount to the close on July 14 of 14 cents per share, and a 9.4 per cent discount to the 15-day volume-weighted average price of 13.8 cents each.
Due to the strong support the placement received, applications had to be scaled back to accomodate demand. As a result, directors did not participate to make room for new investors.
“This success of this raise means it’s now game on for growth, growth, growth in B2B,” Chairman James Baillieu said.
“More than a dozen high-quality institutional names are coming on to the register for their first taste of Candy Club and we are thrilled to have them on board,” he added.
The shares are expected to be issued on or around July 27.
Candy Club is up 3.75 per cent on the market this morning and shares are trading for 14.5 cents each at 11:06 am AEST.