- Subscription-based candy delivery business Candy Club (CLB) has successfully pulled in nearly $21 million through a placement and debt facility
- The placement saw the issue of 48.6 million shares at 22 cents each to raise $10.7 million
- Company directors James Baillieu and Kan Tang have collectively purchased $3 million worth of shares, subject to shareholder approval
- In addition, Candy Club has secured US$7.5 million (nearly A$10 million) in debt funding from Venture Lending & Leasing IX
- Funds will be used to strengthen the company’s balance sheet and help accelerate growth
- On market close for the day, Candy Club is down 4.35 per cent and is trading at 22 cents per share
Candy Club (CLB) has successfully pulled in nearly $21 million through a placement and debt facility.
The placement saw the issue of 48.6 million shares at 22 cents each to raise $10.7 million.
Company directors James Baillieu and Kan Tang are set to collectively purchased $3 million worth of shares, subject to shareholder approval.
In addition, Candy Club has secured US$7.5 million (nearly A$10 million) in debt funding from Venture Lending & Leasing IX, which is part of leading Silicon Valley equity and debt venture firm Western Technology Investment (WTI).
The debt funding includes a warrant for WTI to purchase up to A$1.9 million worth of Candy Club shares. This is also subject to shareholder approval.
If the warrant is not approved by shareholders, Candy Club will then be required to
pay a break fee estimated at US$2.1 million (A$2.7 million).
Funds will be used for general purposes such as accelerating growth, addition staff, marketing campaigns and strengthening the company’s balance sheet.
“WTI has a strong reputation in the market for providing founder friendly
debt capital and has done US$6 billion worth of deals over 40 years,” CEO Keith Cohn said.
“The Candy Club Board is thrilled that WTI has decided to partner with us in our next stage of growth in the U.S. market,” he added.
On market close for the day, Candy Club is down 4.35 per cent and is trading at 22 cents per share.