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Evolve Education Group (ASX:EVO) to raise $22M to buy more childcare centres

Education
ASX:EVO      MCAP $109.2M
01 April 2021 10:00 (AEST)

Evolve Education Group (EVO) has received strong commitments to raise $21.7
million through a placement.

The company entered a trading halt yesterday, with details of the raise initially expected on April 6.

However, today Evolve has announced the full placement details, stating that the money will go towards funding flexibility for future centre acquisition opportunities in Australia.

Approximately 19.7 million new fully paid ordinary shares will be issued at $1.10 each, representing a 7.9 per cent discount to yesterday’s closing price.

New shares issued under the placement will rank equally with existing EVO ordinary shares.

Settlement is scheduled for Friday April 9, with allotment and quotation of shares expected on the NZX and ASX on Monday April 12.

The company said new and existing institutional and sophisticated investors showed strong support for the raise.

Managing Director Chris Scott commented on the placement.

“The capital raising will contribute to further implementing our Australian expansion strategy, as we believe the current market conditions are highly favourable for centre acquisitions and market consolidation. We look forward to putting investors’ money to work,” he said.

EVO’s shares last traded at $1.20 on March 30.

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