The Funtastic share price was up 200% today after it came out of a suspension and completed a placement to investors.
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The Funtastic Limited (ASX: FUN) share price was up 207.69% this morning, reaching 20 cents before dropping back to 14 cents at the time of writing. This came after the company’s shares were lifted from a suspension that commenced on 5 October 2020.
What has Funtastic announced recently?
On 23 October, Funtastic announced that it would undertake the acquisition of Australian e-commerce websites Toys “R” Us, Babies “R” Us, Hobby Warehouse and Mittoni. The company also announced that it would recapitalise through a fully underwritten placement and a debt for equity swap.
This morning, the company announced that it had successfully completed a placement worth $29 million. Funtastic will issue 258.9 million shares at an issue price of 11.2 cents. According to the company, the placement was well supported by both existing shareholders and new investors. The company’s major shareholder, Jaszac Investments Pty Ltd, also committed to a conversion of $6 million of debt to equity, also at an issue price of 11.2 cents.
The planned acquisition, placement and debt for equity swap are subject to shareholder approval, which will be sought at the company’s annual general meeting on 23 November 2020.
The issue price of 11.2 cents was a 72% premium to the company’s last trading price of 6.5 cents on 30 September.
According to Funtastic, capital raised from the company’s placement will fund the growth of the group, develop logistics, warehousing and automation capabilities, marketing and brand development, debt repayment and the development of e-commerce technology and associated intellectual property.
Funtastic chair Bernie Brooks commented on the company’s placement:
With a strengthened balance sheet, Funtastic is well positioned to take advantage of the structural shift towards e-commerce for toys and hobby products while continuing to support and grow our ongoing wholesale agreements with our distribution and retail partners.
About the Funtastic share price
Funtastic is a wholesaler and distributor of consumer lifestyle products, which includes its own products and the products of its partners. Funtastic has been listed on the ASX since 2000.
The Funtastic share price is up 3,400% since its 52-week low of 0.4 cents, and is up 600% since the beginning of the year. The Funtastic share price is up 366.67% since this time last year.
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