- Vocational training provider iCollege (ICT) is planning to raise $5.5 million to accelerate growth in the domestic student market
- The company will issue 55 million shares at 10 cents each to institutional, professional and sophisticated investors
- Originally, iCollege was going to issue 30 million shares, but increased this after receiving very strong support
- COVID-19 has renewed interest in upskilling and gaining new skills, which presents a significant opportunity for iCollege
- iCollege will take advantage of this by providing training packages to individuals and businesses in need
- Company shares are up 8.33 per cent and are trading for 13 cents
After ending last week in a trading halt, iCollege (ICT) has now received binding commitments to raise $5.5 million through a placement.
A total of 55 million shares will be issued to new and existing shareholders, institutions and family offices at 10 cents per share.
Originally, the company was going to issue 30 million shares but increased this after receiving very strong support for the placement.
"This well supported placement gives us the necessary financial flexibility and balance sheet strength to fast-track our expansion with new, supportive capital," Managing Director Ash Katta said.
"Previously we have funded our growth from cash flow but following this placement, we now have the opportunity to bring forward several exciting projects which are expected to contribute significantly to the company’s overall profitability," Ash added.
iCollege is a vocational training provider comprising six businesses that deliver vocational education and training solutions in Australia and internationally.
The money raised will be used to take advantage of current opportunities in the domestic student market created by federal and state government initiatives such as the $1 billion Job Trainer Fund.
While the company ended the September quarter with record revenue of $4.1 million and an earnings before interest, taxes, depreciation and amortisation (EBITDA) of $700,000, it requires further capital to accelerate its strategy of providing training to industries that are experiencing skill shortages.
It's no doubt the current COVID-19 climate has presented an opportunity for iCollege to offer training to people or organisations that need to improve their skills or gain new ones.
Additionally, iCollege will use the money to roll-out online coding bootcamps and commercialise the 'Coding Factory'. This is is a specialist business that provides gamified online training to children aged seven to 14.
This has been successfully trialled and will be delivered through iCollege's recently acquired business, The Hacking School.
Company shares are up 8.33 per cent and are trading for 13 cents at 3:44 pm AEDT.