Reclaim completes placement

01/08/2014 - 10:33

Rubber recycler and manufacturer Reclaim Industries has announced a new board appointment and the successful completion of a $1 million placement.

Reclaim was listed as a rubber recycler but is now expanding into technology

Rubber recycler and manufacturer Reclaim Industries has announced a new board appointment and the successful completion of a $1 million placement.

The company issued 68 million ordinary shares at 1.5 cents per share, a 50 per cent discount from its current price.

Today's announcement is further to the $582,000 raised earlier this year.

In May, Reclaim announced a deal to take over Skills Connect, a cloud-based recruitment platform.

The deal was contingent on Reclaim successfully raising $2.5 million, but the funding from today's raising won't be used towards that deal.

Reclaim also announced the engagement of Texas-based Endeavour Technologies to improve Skills Connect’s software.

The company has advised that it would need to “re-comply” with chapters 1 & 2 of the ASX listing rules, due to its change in business model.

It has also expressed interest in Skills Connect's parent company Employment Management Systems.

To do so, it has committed to issue a further 20 cent per share raising and engage a meeting of shareholders.

Meanwhile, the company has appointed Graham Steer as a director.

Reclaim was up 3.57 per cent on the news to 2.9 cents at the time of writing.

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