iCollege readies for backdoor listing

11/04/2014 - 12:49
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Online education provider iCollege expects to begin trading within days on the Australian Securities Exchange as the company wraps up a reverse takeover of DGI Holdings.

iCollege was founded by Victor Hawkins. Photo: Attila Csaszar

Online education provider iCollege expects to begin trading within days on the Australian Securities Exchange as the company wraps up a reverse takeover of DGI Holdings.

The Subiaco-based iCollege was founded by Victor Hawkins, a former management consultant who acquired the National Education Academy in 2009 and restructured the company from a manual business model into an online cloud-based system.

As part of the transaction, DGI, a former video projection developer, will issue iCollege shareholders, on a pre-consolidation basis, 250 million shares, which represents about 73 per cent of the available capital.

The deal also includes 125 million options and 150 million performance shares.

Following a 1-for-15 share consolidation and subsequent capital raising the company’s shares on issue will be reduced to about 55 million, as well as about 14.7 million options.

Mr Hawkins will be the largest shareholder in the company through his Performa Capital entity, which will hold a 17.6 per cent stake in the combined company.

Frontier Capital will hold a 9.8 per cent stake, and Phillip Re, a non-executive director of iCollege, will hold a 6.8 per cent stake in the company through Traditional Securities.

iCollege announced on Thursday, April 10 that it had raised $2.6 million in its capital raising, which was oversubscribed – the company had been planning to raise at least $2.5 million.

The company said it had also completed its share consolidation and changed the trading name from DGI Holdings to iCollege to start trading on the ASX in mid-April.

Mr Hawkins will be appointed managing director of the combined entity, and Johannes de Back has been named as chairman.

iCollege plans to increase the number of course offerings, which range from personal finance to public speaking, from 15 to 50 over the next 18 months and will target a further 40 countries in North America, Europe and Asia.

The company said Australia’s online education market was worth $5.9 billion in 2013, with non-formal courses accounting for about 50 per cent of the revenue.

Otsana Capital and Steinepreis Paganin are advisors for the deal.

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