Freelancer just completed a $10 million share placement at $1.40 a piece after entering a trading halt on Monday, announcing to the market it was considering a capital raise.
The funds will be used to fund a number of potential “bolt-on acquisitions” and to accelerate the company’s growth and fund corporate expenses.
“The $10 million placement proceeds received by the company will enable us to continue investing in the business to fuel its rapid growth,” Freelancer CEO Matt Barrie said.
Freelancer hit positive operating cashflows of $1.1 million in the six months to June and has made a number of acquisitions in the past 12 months including Warrior Forum. In April it raised $10 million to fund the $7.5 million acquisition of Escrow.com which is expected to be finalised shortly.
Freelancer’s original VC investor Simon Clausen and company CEO Matt Barrie have also sold $23 million and $12 million worth of shares respectively, alongside the placement at $1.40.
The sale of $35 million worth of shares equates to about 10% of Clausen’s shareholding and 4% of Barrie’s stake, before the transaction. It also boosts the free float by about 23%.
“I remain absolutely committed to Freelancer as chief executive and a shareholder, but recognise the need to sell a small proportion of my shares to increase the company’s free float and trading liquidity,” Freelancer CEO Matt Barrie said.
Barrie said he was “thrilled” to see new shareholders investing in the company.
“As we continue to rapidly grow the company, it is important that all shareholders benefit from increased market liquidity and a broadened share register,” he said.
The marketplace now has 16 million users and 8 million projects on its system.
The placement and share sale is expected to be settled on Monday August 10.