Secures Controlled Placement Facility
- Acuity Capital provides placement facility of up to $3 million.
- Facility provides Collaborate with control over the placement process.
- Provides access to funding for growth of Collaborate's mobility and peer-to-peer businesses.
Under the terms of the CPD, Collaborate retains full control of all aspects of initiating the placement process: having sole discretion as to whether or not to utilise the CPD, the quantum of issued shares, the minimum issue price of shares and the timing of each placement tranche (if any).
There are no obligations on Collaborate to utilise the CPD and Collaborate may terminate the CPD at any time with 5 Business Days' notice, without cost or penalty. Acuity Capital and the CPD do not place any restrictions at any time on Collaborate raising capital through other methods.
If the Company elects to utilise the CPD, Collaborate is able to set a floor price (at its sole discretion) and the final issue price will be calculated as the greater of that floor price set by Collaborate and a 10% discount to a Volume Weighted Average Price (VWAP) of Collaborate shares over a period of Collaborate's choosing (again at the sole discretion of Collaborate).
The CPD is a valuable tool as an additional funding alternative. Placements made under the CPD will principally be used to provide funding for customer acquisition, to support the launch of new initiatives and for general working capital.
As collateral for the CPD, Collaborate has agreed to place 20,000,000 fully paid ordinary shares at nil consideration to Acuity Capital (Collateral Shares). The Company may, at any time, terminate the CPD and buy back the Collateral Shares for nil consideration (subject to shareholder approval).
Collaborate and Acuity Capital have agreed to a one-off issue of 2,500,000 Shares at a deemed issue price of $0.015 per Share in consideration for entering in to the CPD (Transaction Fee Shares). There are no other establishment or placement fees required to be paid to Acuity Capital.
CEO and Executive Director, Mr Chris Noone, said "The CPD enables the Company to access funds as and when it requires and avoids immediate shareholder dilution at the present share price while providing funding for the growth of the business and to support the launch of the previously announced car subscription product."
Shares under the CPD will be issued under the Company's available placement capacities.
About Collaborate Corporation Ltd
Collaborate Corporation Limited is listed on the Australian Securities Exchange (ASX:CL8). It is Australia's leading listed company focused on 'collaborative consumption', 'peer-to-peer' or 'sharing economy' businesses. Collaborate currently has three core business segments: www.DriveMyCar.com.au Australia's leading peer-to-peer car rental business; www.MyCaravan.com.au Australia's leading peer-to-peer caravan rental business; and www.Mobilise.com an online hire marketplace to unlock the enormous potential of under-utilised assets. Through our proprietary trust and reputation platform, www.peerpass.com.au we create 'trust' between individuals and make it possible for people to safely transact with each other in the sharing economy.
Collaborate Corporation Ltd