1-Page Limited (ASX: 1PG) is an online recruitment company based in Silicon Valley. It is also the first company from the region to list on the ASX. The company has customers ranging from First Republic Bank to Red Bull. It reports to have a unique database of over 1 billion candidate profiles, which it considers as a significant asset.
1-Page announced to the ASX that it is undertaking a fully underwritten institutional placement to raise $50 million. The placement will entail selling 11.1 million shares at a fixed price of $4.50 per share. The placement share price reflects 1-Page’s closing price on 23rd October 2015.
According to the report, 1-Page will invest the proceeds of the placement in commercialization of its recruitment platform and a proposed acquisition to generate higher revenues.
1-Page intends to recruit triple the number of employees across its Sales, Customer Success, Product and Engineering teams by the end of 2016. This should expand the company’s revenue generating capabilities. The proceeds will also be used to fund its working capital requirements over the next 12 months.
1-Page is also engaged in a strategic acquisition of an undisclosed company which can deepen its capabilities in product and strategy and extend the revenue generating capacity of its unique database. If successful, the transaction should be completed by December 2015. The acquisition is to be funded through a combination of up-front cash and an issue of equity. The upfront cash is to be paid through the proceeds and the equity is also set to be issued as part of this placement. The company also plans on utilising the proceeds to increase flexibility of funding any potential future acquisition opportunities.
The 1-Page shares were last traded at $4.55 which is a 285% increase compared to the beginning of the year.
Author: Imran Valibhoy
Oct 27, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.