Collaborate Corporation (ASX:CL8) has raised $1.26 million to advance development of its collaborative consumption business.
The funds were raised through a heavily oversubscribed placement of 63 million shares priced at $0.02 each to high net worth and institutional investors.
It plans to issue 31.5 million free attaching options exercisable at $0.02 per option and expiring 30 April 2017 on a 1 for 2 basis.
Proceeds will be used to advance the evolution of the company’s proprietary trust and reputation platform, enabling the company to launch into new peer-to-peer markets, and support marketing and PR activities for the soon to be re-launched DriveMyCar website.
The company seeks to follow in the footsteps of U.S. peer-to-peer businesses such as Airbnb, Uber, Lending Club and RelayRides that have recently seen extraordinary valuation increases.
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