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Candy Club (ASX:CLB) to raise capital after a successful year

The Market Online Deal Room
ASX:CLB
20 November 2020 14:30 (AEDT)
Candy Club (ASX:CLB) - Chairman, James Baillieu

Source: Financial Review

Candy Club (CLB) has entered back-to-back trading halts ahead of a proposed capital raise.

The confectionary company will remain in a trading halt until Thursday, November 26, unless details of the raise are announced earlier.

Candy Club is a California-based confectionary business which essentially offers monthly subscriptions for candy boxes as well as offering one-off gift boxes that can be personalised.

In a business update released earlier this month, Candy Club recalled the year that has been. Between January and October this year, Candy Club’s total revenue (including business-to-business and business-to-consumer sales) enjoyed a sweet 85.4 per cent year-on-year increase.

Its customer base has grown significantly from 1888 as of December 31, 2019, to nearly 8000 at the time of the report.

A further highlight is securing big-name distribution partners, including Bloomingdales, Macy’s, Nordstrom Rack, Caribou Coffee, Hallmark Stores and Winco.

As part of its focus to build sales and marketing initiatives and expand its distribution footprint, Candy Club has a number of initiatives underway that the upcoming capital raise may support.

The consumer stock is planning to develop new products, marketing initiatives, grow the business-to-business customer and revenue base, develop its business-to-consumer subscription business, and more.

Company shares last traded on Thursday, November 19, for 12.5 cents.

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