logo-loader
The GO2 People Ltd

GO2 People shakes hands on debt facility

Aquisition-hungry GO2 hopes to relist on the ASX after its capital raising.

The GO2 People Ltd - GO2 People shakes hands on debt facility

GO2 People Ltd (ASX:GO2) has signed a non-binding heads of agreement with Institute of Global Capital Pty Ltd (IGC) that could see the proposed lender fund up to $2 million of the human resources specialist’s acquisition of Industry Pathways Pty Ltd (IPW).

The company has shrunk the minimum size of a capital raising to fund the acquisition of training organisation IPW to $1.3 million, with lender IGC willing to fund at least $1 million of the cap raise.

GO2’s buy price for fast-growing trainer IPW was $5 million cash and shares, with IPW having been tipped to grow by 28.2% to $2 million in financial year 2019.

Buy-keen GO2 expects to return to trading on the Australian Securities Exchange after it issues new shares from its revised offer due to close on August 28, 2019.

IGC’s debt facility has a 2-year term and 16% interest rate on the first 12 months, with 20% annual interest on the remainder of the facility.

Repayments are to be in tranches of at least $100,000 and can be repaid early, but not earlier than the 6 months mark.

GO2 reported today, “The debt facility, in unison with the equity raise, will provide capital raising completion certainty and allows management to focus on integration and synergies from the IPW acquisition.”

The company views the acquisition as complementary to its recruitment business and plans to cross-sell IPW training programs to its 175,000-strong job applicant database.

The vertically-integrated recruitment, training and building services company last traded on the ASX in April 2019.

Quick facts: The GO2 People Ltd

Price: $0.05

Market: ASX
Market Cap: $5.31 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of The GO2 People Ltd named herein, including the promotion by the Company of The GO2 People Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

The GO2 People intends acquiring online education and training provider...

The GO2 People Ltd (ASX:GO2) managing director Billy Ferreira updates Proactive Investors on its move to acquire Industry Pathways, which is one of Australia’s fastest growing training organisations. GO2, a labour hire business, specialises in the construction, mining and infrastructure...

on 29/7/19

2 min read