Reclaim shares spike on takeover deal

Shares in Perth-based rubber recycling and manufacturing company Reclaim Industries have soared on the ASX on the back of its $3.8 million all-scrip takeover of cloud-based recruitment business Skills Connect.

Reclaim told the market it had entered into a heads of agreement to acquire Skills Connect for initial consideration of 420 million Reclaim shares.

The share issue represents a value of about $3.8 million based on Reclaim's last closing price of 0.9 cents.

It will issue a further 650 million shares subject to the achievement of revenue milestones.

Skills Connect, which is privately owned, filters job candidates to streamline the recruitment process for businesses.

Reclaim must successfully complete a capital raising of at least $2.5 million and obtain shareholder approvals.

The company's shares climbed 89 per cent to a closing price of 1.7 cents.