Invigor Group (ASX:IVO), an information technology and digital solutions company, is raising up to $7 million to finance the initial payment required for its acquisition of Search Results Group.
Search Results Group is an Australian online media agency offering search, web development and marketing products to small and medium enterprises.
The company has appointed BBY Limited to assist with capital management and raising the funds.
This will consist of a placement of shares priced the higher of at $0.08 each, or the amount which equates to 80% of the average closing price for shares calculated over the last 5 days on which sales of shares were recorded, to raise up to $6.5 million as well as a share purchase plan.
It presently has indications of 50% being committed to the placement subject to shareholder approval.
Besides its use for acquiring Search Results Group, proceeds will also be used to:
- Finance the proposed investment in My Verified ID Corp announced on 17 July 2014;
- Fund the deferred payment obligations in respect of its acquisition of the balance of issued capital of Global Group Australia Pty Ltd;
- Retire outstanding debt financing obligations; and
- Provide working capital required to grow the company’s business.
Invigor had in July signed a Foundation Agreement to acquire the Search Results Group for $5.8 million.
This is expected to improve its EBITDA and generate net operating cash inflows.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.
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