CLG is the merger of two businesses;O F Packagingprovides...

• CLG is the merger of two businesses;O F Packagingprovides innovative flexible and carton packaging, printing and related sustainability solutions andClosetheLoopis an established operator in resource collection and recycling.
• Together, CLG is a leading participant in the globalcircular economyfor plastic packaging, processing, recycling and refurbishment of print toner cartridges and other consumable products.
• One of the company’s key strategic growth drivers lies in itsexisting global collection infrastructurewhich will help to extend its offering to multiple verticals includinge-waste, batteries, cosmetics, power tools and other plastic items.
• CLG has thousands of collection depots in Australia that collects and recycles printer cartridges. This collection capability will be used for otherurban waste miningplacing the company squarely within the burgeoning circular economy as it stands to benefit from a number of tailwinds in the future.
• Capital raised from IPO to fund furtherorganic growth and via earnings accretive acquisitions. There is no management sell down or repayment of debt.
• Strong Board & Management team: Deep expertise, ideally placed to execute on growth strategy, founder-led business combined with high levels of Board & Management ownership at c44% post listing.

Pro-forma EBITDA in FY21 was $13.2m and FY22 guidance is $14.4m, putting the company on attractive FY22 valuation multiples;3.7x EV/EBITDAand 0.7x EV/Revenue

ClosetheLoop(CLG) proposes to raise between $10 million and $12 million at A$0.20 per share by way of an IPO and listing on the ASX through the issue of between 50 million and 60 million new fully paid ordinary shares with an indicative market capitalisation of between $63.9 million - $65.9 million

Looks like an excellent opportunity to me to be able to invest in a true circular economy enterprise that is extremely profitable and has huge tailwinds behind it both through regulation and the ESG theme which has many years ahead of it.