Key points
- $4 million placement completed to support Hudson acquisition
- New shares issued at $1.00 each, a discount to recent prices
- Placement expands shareholder base and enhances balance sheet flexibility
Full summary
HiTech Group Australia Ltd (ASX:HIT) has successfully completed a $4 million equity raising through a placement of new shares at $1.00 each, before costs. The placement, which involved the issuance of 4 million shares, was significantly oversubscribed and attracted new institutional and professional investors. The proceeds will support the working capital requirements of the recently completed acquisition of selected assets from Hudson Global Resources, a move that is expected to create a national recruitment and professional services platform with approximately $216 million of pro forma combined revenue. The acquisition is seen as transformational for HiTech, broadening its customer base across federal and state government and the private sector.