Reclaim to raise $2m for takeover

23/09/2014 - 09:42

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Rubber recycler and manufacturer Reclaim Industries says it will raise $2 million to provide funding for its proposed $3.8 million takeover of cloud-based recruitment business Skills Connect and has placed a formal share sale agreement to the company.

Reclaim to raise $2m for takeover

Rubber recycler and manufacturer Reclaim Industries says it will raise $2 million to provide funding for its proposed $3.8 million takeover of cloud-based recruitment business Skills Connect and has placed a formal share sale agreement to the company.

Reclaim said it will issue 400 million consideration shares to Skills Connect shareholders, and once the takeover is completed, it will change its name to Skills Connect Limited.

Reclaim will also issue 20,000 performance shares, subject to the achievement of revenue milestones.

The share sale agreement is subject to conditional approval as both parties still need to complete due diligence and receive shareholder approval.

Reclaim announced in May that it had entered into a heads of agreement to acquire Skills Connect, which surged the company’s share price by 89 per cent.

Reclaim shares were unchanged at 2.3 cents per share at 9:45am.

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