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GO2 People secures commitments to raise $1.3 million, extends closing date

After a restructure of the business in April 2019, the standalone GO2 People business generated its first EBITDA positive month in July 2019.

The GO2 People Ltd - GO2 People extends capital raising closing date with secured commitments for $1.3 million
The company is well on-track to be a national, vertically integrated labour hire and training business

GO2 People Ltd (ASX:GO2) has secured commitments for the $1.3 million minimum subscription under a capital raising offer and has extended the offer closing date to Thursday, September 5.

The commitments were received by the lead manager to the offer, Vested Equities Pty Ltd, at 7.5 cents per share with a free attached 1:1 call option at 10 cents per share with a 12-month expiry.

Acquiring Industry Pathways

These funds are being raised to enable the company to complete the acquisition of Industry Pathways Pty Ltd (IPW), which is expected to further evolve the GO2 business as a national, vertically integrated labour hire and training business.

Completion of the capital raising is one of the key conditions precedent to the $2 million debt facility drawdown and completion of the IPW acquisition

The offer has been extended to provide for receipt of valid application forms and related funds.

It is expected the final conditions precedent, including finalising the loan agreement with Global Capital Pty Ltd and completion of the IPW acquisition will occur upon the close of the offer later this week.

The standalone GO2 business completed a restructure in April 2019.

EBITDA turnaround

As a result of this restructure, the company achieved an EBITDA neutral position for the month of June 2019 and its first EBITDA positive month in July 2019.

The company’s focus remains on realising its vision of a national, vertically integrated labour hire and training business which generates positive and growing free cash flow for shareholders.

Going forward, GO2 will focus efforts on growing the profitability of the core GO2 business and the successful integration of IPW into the GO2 group, using this as a platform to increase the exposure of the company across Australia.

Integration of the two businesses is expected to allow GO2 to capitalise on cross-promotional synergies.

Quick facts: The GO2 People Ltd

Price: 0.01 AUD

ASX:GO2
Market: ASX
Market Cap: $1.43 m
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