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- Vehicle lender Collaborate (CL8) plans to offer a non-renounceable entitlement issue of shares and free-attaching options
- The company hopes to raise approximately $3.5 million, before costs, through the partially underwritten entitlement issue
- Collaborate will offer up to approximately 384 million new shares at an issue price of 0.9 cents each
- The entitlement issue proceeds will fund continued growth of the Carly car subscription business and DriveMyCar car rental business
- Collaborate Corporation fell 11.11 per cent, to trade for 0.8 cents per share
Vehicle lender Collaborate (CL8) plans to offer a non-renounceable entitlement issue of shares and free-attaching options.
The company hopes to raise approximately $3.5 million, before costs, through the entitlement issue.
Collaborate’s entitlement issue will be partially underwritten for up to $2.08 million by existing shareholders in the company. Underwriters of the issue include SG Fleet Management, Willoughby Capital, company director Adrian Bunter, CEO Chris Noone, and COO Ben Hershman.
Collaborate will offer up to approximately 384 million new shares, at an issue price of $0.009 each. This will be on the basis of one new share for every three existing shares held on the record date.
Subscribers for shares under the issue will also received free attaching options on a one-for-five basis. The options will have an exercise price of $0.015 per option, and will expire on October 31, 2022.
The entitlement issue proceeds will fund continued growth of Collaborate’s Carly car subscription business and DriveMyCar car rental business. In particular, the funds will go towards marketing initiatives and business development opportunities to grow fleet sizes.
Some proceeds may also go towards general working capital, and covering the cost of the entitlement issue.
Collaborate’s CEO, Chris Noone, thanked all company shareholders for their past and ongoing support.
“We appreciate the ongoing commitment shown by major shareholders SG Fleet and Willoughby Capital, and their ongoing commitments to support the continued growth of the Carly vehicle subscription business and the DriveMyCar car rental business,” he said.
“Despite the difficulties associated with COVID-19, we have seen strong growth in Carly car subscriptions, and we will look to continue to capitalise on the significant interest shown by consumers and the motor vehicle industry in Carly car subscriptions,” he added.
Collaborate Corporation fell 11.11 per cent, to trade for 0.8 cents per share.
