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  • E-commerce and digital marketing company RooLife Group (RLG) has announced a $6.25 million capital raise
  • The capital raise consists of both a placement and a non-renounceable entitlement issue
  • Under the placement, more than 25 million fully paid ordinary shares will be issued to investors of Sequoia Corporate Finance
  • The new shares will all be priced at 3 cents each, with RooLife recieveing just over $766,000 in subscriptions already
  • Additionally, investors will receive one free attaching listed option for every share purchase, with each option having an exercise price of 5 cents each
  • Meanwhile, under the non-renounceable entitlement issue, RooLife aims to raise up to $5.49 million
  • Shareholders will receive one share for every two shares held, with new share priced at 3 cents each as well, with the same option attached
  • The company will use all of the funds raised to speed-up client acquisitions, undertake global expansion and for online marketing support
  • RooLife has ended the day 6.06 per cent in the green with shares trading for 3.5 cents each

E-commerce and digital marketing company RooLife Group (RLG) has announced a $6.25 million capital raise via a placement and a non-renounceable entitlement issue.

Placement

The placement consists of 25,546,959 new fully paid ordinary shares being issued to sophisticated and professional investors of Sequoia Corporate Finance.

Shares will be priced at 3 cents each and Roolife said they've already recieved offers worth $766,397.

Additionally, investors will each receive one free attaching listed option for every one share purchased. Each option will have an exercise price of 5 cents each and an expiry of October 31, 2021 - however, this is subject to shareholder approval.

RooLife expects to issue both the shares and options next week.

The money raised from the placement will be used to speed-up new client acquisitions and target sales growth for RooLife's China-focused e-commerce operations.

Entitlement issue

Meanwhile, RooLife will also undertake a non-renounceable entitlement issue to raise an additional $5.49 million.

Under the offer, shareholders will receive one share for every two shares held at the same issue price of 3 cents per share, with one free attaching option for every one share.

The entitlement offer also includes a shortfall offer, which allows shareholders to apply for extra shares and attaching options in excess of their entitlements.

Sequoia has arranged for sophisticated and professional investors to bid for the shortfall, after both the entitlement offer and shortfall offer close.

RooLife said funds raised under the entitlement offer will be used for the company's mobile shopping app and payments project, global expansion and online marketing support, as well as general working capital.

RooLife has ended the day 6.06 per cent in the green with shares trading for 3.5 cents each in an $11.24 million market cap.


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