HiTech Group Australia secures $4M placement for Hudson deal
- HiTech Group Australia raises $4 million to support its recent acquisition of Hudson assets.
- The placement expands the equity base and maintains cash reserves to assist balance sheet flexibility.
- The funding structure aims to accelerate debt repayment while covering working capital requirements.
HiTech Group Australia (ASX:HIT) has secured firm commitments to raise $4 million through a share placement at $1 per share to fund working capital following its acquisition of selected assets from Hudson Global Resources (Aust).
The new share placement compares to the company's total planned sources of funds of $21.7 million, which also includes $7.7 million in cash and $10 million from a term loan.
"The equity raising provides HiTech with additional balance sheet flexibility as we begin the integration of Hudson and position the enlarged Group for its next phase of growth," said HiTech Group Australia Managing Director and CEO Elias Hazouri.
The proceeds will help cover $5.1 million in upfront cash consideration, $8.1 million to refinance an existing facility, $2 millon in transaction costs, and $6.5 million for working capital.
Following the announcement, the HiTech Group Australia share price was down at $1.05.
The recruitment services group operates across Australia, supplying Information and Communications Technology talent alongside consulting services to corporate and public sector clients.
