- Candy Club (CLB) is set to announce the details of a capital raise via a proposed share placement to institutional investors
- Candy Club shares have been placed into a trading halt today ahead of the announcement, with the halt to be lifted by Friday, July 17
- The capital raise comes after the sweets company took out a US$1.5 million (around A$2.14 million) loan in March
- However, CCB's recent quarterly report shows the company is yet to turn a profit, but it did experience 67 per cent growth in revenue between the first and second quarters of its 2020 financial year
- Shares in Candy Club last traded for 14 cents each
Confectionary company Candy Club (CLB) will soon announce details of a capital raise after entering a trading halt today.
The sweets business requested a trading halt from the ASX, ahead of a proposed share placement to institutional investors.
No details have been released just yet about how much Candy Club hopes to raise via the placement, but the trading halt will be lifted by the end of the week, on July 17, or when the capital raise announcement is made.
Candy Club sells its sweets via an online monthly subscription box, as well as in-store at some U.S. retailers and online.
Recently, the confectionary company took out a US$1.5 million (around A$2.14 million) loan in March this year, as well as a bridging loan worth US$650,000 (approximately A$929,000) from two of its directors.
The wider U.S. retail industry has been badly affected by COVID-19 restrictions, which forced many brick-and-mortar stores to shut.
However, in a recent quarterly activity report, Candy Club reported a 67 per cent jump in revenue between the first and second quarters of its 2020 financial year.
The sweets company is not yet profitable, but in the same report, it said it expects that to change by the fourth quarter of its 2020 financial year.
Before today's trading halt, shares in Candy Club were trading for 14 cents per share on July 13.