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The GO2 People Ltd

The GO2 People opens capital raising to investors

The raising is to fund the acquisition of one of Australia’s fastest growing training organisations, Industry Pathways Pty Ltd (IPW).

three hands dropping coins into three jars
Shareholders will vote to approve the capital raising and acquisition on 9 August, 2019

The GO2 People Ltd (ASX:GO2) last night lodged its prospectus officially opening its capital raising offer, which seeks to raise up to $4.0 million through the issue of shares priced at 7.5 cents.

Each share that is subscribed for in the capital raising will come with an attaching free option exercisable at 10 cents expiring 12 months from the date of issue.

The capital raising is to fund the cash component of the consideration payable for the acquisition of training organisation Industry Pathways Pty Ltd (IPW).

READ: The GO2 People outlines capital raising for acquisition of training organisation

IPW was founded in 2011 and is a fast growing registered training organisation (RTO) offering fee for service training and education up to Diploma level in the mining and health sectors.

Notably, it does not rely on any government funding.

GO2 considers the acquisition of IPW to be a complementary expansion of its existing business.

Over the past 3 years, IPW has seen consistent growth in revenue and profitability, and is expected to generate EBITDA of $2 million in FY2019.

Meeting date set for 9 August

The offer opened yesterday and will close in about one month on 12 August 2019.

Importantly, on 9 August 2019, a general meeting has been called at which shareholders will vote on approving the capital raising underway to facilitate the acquisition of IPW.

Shareholder approval is a normal requirement in a circumstance such as this.

Quick facts: The GO2 People Ltd

Price: $0.09

Market: ASX
Market Cap: $10.62 m
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