CV Check to raise $3m

CV Check is seeking to raise $3 million via a share placement, as it seeks to build on its recent positive momentum and accelerate growth.

Shares will be issued at 17 cents per share, which represents a 14.3 per cent discount to its 20-day volume-weighted average price.

Foster Stockbroking and Shaw and Partners will act as joint lead managers to the placement.  

In a research note to clients, Foster said funds raised would be used to accelerate organic growth of CV Check’s enterprise and small-to-medium enterprise client base, and to continue to increase its share of the online verification and screening market.

Additionally, the funds will go towards product sale diversification and working capital.

Last month, CV announced it achieved its third straight quarter of positive cash flow, finishing the June quarter $27,000 in the black and with $3.1 million cash on hand.

Prior to these three quarters, the company had never recorded positive cash flow for a quarter.

Shares in CV Check are currently in a trading halt.