Startup advisory and investment business Scalare Partners has raised just over half the $8 million it was hoping to raise as part of a backdoor listing on the ASX.
The public offer raised $4.301 million at $0.25 cents a share issuing 17.2044 million fully paid ordinary shares in its reverse takeover of former confectionary maker Candy Club. The raise values the business at $23.7 million.
The company ticker code changed to SCP on Monday amid plans for readmission to the ASX. Shares remain suspended from their days as the lolly maker, with Scalare set to make its trading debut on Thursday, November 14.
Adelle Howse, Neil Carter, James Lougheed and Beau Quarry have been appointed new directors with Candy Club directors Gary Simonite and Gregory Starr resigning.
While Scalare had hoped to relist in October, the path to going public for Scalare hit some speed bumps in recent months amid intentions to list in October.
The Australian Securities and Investment Commission (ASIC) intervened after the prospectus for a reverse takeover was issued in August, flagging concerns that it did not adequately disclose all the required information under the Corporations Act, including Scalare’s US expansion plans, alongside questions about the valuation and performance of underlying investments in the business. But interim stop orders from ASIC was lifted a few days later and the raise went ahead seeking between $4m and $8m.
Scalare pitches itself as a tech accelerator that offers fractional services spanning commercialisation, capital raises, finance, marketing, product development, governance, operations, and people & culture to give startups with expert support when they need it, without having to hire people
This year the company acquired the Tech Ready Women academy, and also runs the annual Australian Technologies Competition.
The Scalare prospectus proposed spending between $1.6m and $2.4m of the $4-8 million raise on investments in new and existing portfolio startups and between $1.2m and $3.7m of the raise is earmarked for working capital.
On a pro rata basis, the $4.3 million means there’s around $2 million for the latter and around $1.3 million for investment.
Scalare is looking to spending up to $500,000 launching a US office, as well as up to $200,000 to launch Tech Ready Women in the States. The company has invested in 28 startups – now 27, following an exit, including shopping platform Brauz, startup investment marketplace InHouse Ventures, fintech FrankieOne and wool classing agtech Zondii.
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