ASX ANNOUNCEMENT 4 MAY 2016 COLLABORATE COMPLETES PLACEMENT AND ADVANCES NEGOTIATION FOR FURTHER FUNDING + Substantial shareholder to subscribe for $99,000 placement. + Director proposes to undertake up to a further $200,000 placement. + Negotiating investment with international institutional investor to provide access to longer term funding for growth. Collaborate Corporation Limited (ASX:CL8) (Collaborate or the Company) is pleased to announce that it has raised $99,000 via a placement to an existing shareholder of the Company (Placement). Hishenk Pty Ltd (Hishenk), the Company’s largest shareholder, will subscribe for 5,500,000 fully paid ordinary shares (Shares) and 1,833,333 free attaching listed options (exercisable at $0.02 and expiring in April 2017) (Options). The Company will utilise its remaining 10% additional placement capacity to issue the Shares whilst the issue of the Options will be subject to shareholder approval. The funding from the Placement will principally be used to grow Collaborate’s peer-to-peer marketplaces through marketing, PR and product development activities and supplement the Company’s general working capital. “We appreciate the continued support from Hishenk to assist the Company in achieving its objectives.” said Chris Noone, CEO of Collaborate Corporation. Subject to shareholder approval, Mr Domenic Carosa, a non-executive director of the Company, has also committed to undertake an investment of a further $200,000 on the same terms as the Placement. Collaborate is also in advanced discussions with an international institutional investor in relation to a longer term funding mechanism. The Directors remain cognisant of the dilutionary effect of capital raisings, particularly at the currently subdued share price. The Company wishes to preserve shareholder value and therefore has not sought to raise excessive funds at this juncture. The Directors will provide details of the material terms of the investment if and when a binding agreement is reached with the investor. Collaborate will shortly call an EGM to refresh the Company’s 15% and 10% placement capacities, seek approval for Mr Carosa, a director of the Company, to subscribe for shares and options to raise a further $50,000 under the placement announced to the market on 16 December 2015, and also seek approval for the issue of options to Hishenk and proposed director-related investment announced today.
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