Airtasker is acquiring one of its major competitors.
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The outsourcing platform’s stock was put in the freezer yesterday as the company underwent a capital raise.
The resulting funds will be put towards the acquisition and operation of OneFlare – Australia’s third largest local services platform.
At the time of writing, the Airtasker share price is 50.5 cents, 0.98% lower than its previous close.
However, earlier today it hit an intraday low of 48 cents – representing a 5.88% plunge.
Let’s take a closer look at what’s driving the Airtasker share price lower today.
Airtasker share price falls on acqusition news
Airtasker’s stock is out of the freezer and sliding lower as the market responds to news of its latest acquisition and capital raise.
The company announced it had agreed to buy OneFlare for $9.8 million yesterday.
$7.55 million of that will be paid via script, with new Airtasker shares issued at a price of 43 cents apiece.
The company also underwent a $6.25 million private placement. That also saw new Airtasker shares offered for 43 cents each.
The resulting cash will cover the remaining costs of the acquisition. It will also go towards the estimated financial year 2023 investment in Oneflare, as well as acquisition and placement costs.
New shares issued under the placement and acquisition combined represent 7.7% of Airtasker’s pre-offer issued share capital.
The company’s directors subscribed for around $3.55 million worth of shares under the placement. Their involvement is subject to future shareholder approval.
On top of the placement, the company is planning to conduct a $1.2 million share purchase plan, issuing new shares for the same asking price.
The Airtasker share price is currently 40% lower than it was at the start of 2022. It has also fallen 58% since this time last year.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.