11th Jan 2019 10:24
LONDON (Alliance News) - Marketplace operator Altitude Group PLC on Friday said it plans to raise GBP7 million to help fund a new acquisition in the US.
Altitude is placing 10.3 million new shares at a price of 68 pence each, raising the GBP7.0 million. Shares were down 0.8% on Friday at 74.40p.
finnCap Ltd has acted as the sole broker for the placing.
The acquisition is AI Mastermind, the membership-based trade group of promotional products distributor Advertising Industry Mastermind Group LLC, which is being bought for a maximum of USD5 million.
Altitude will pay USD3.5 million in cash, USD750,000 in shares at the placing price, and USD750,000 will be held in escrow for a potential deferred consideration.
The rest of the USD7.0 million raised will go towards working capital.
"Mastermind is the largest and fastest-growing promotional products distributor member group in the US, with 1,917 members (out of approximately 23,000 distributors across the US)," said Altitude.
"Membership numbers have grown from 1,455 as at 31 December 2017 to 1,917 as at December 31 2018, representing a 32% increase."
"The acquisition will enable Altitude to monetise the entire USD1.7 billion throughput revenue pipeline that exists within the AI Mastermind distributor member group from both the distributor and supplier side," it added.
Altitude also Friday reported its AIMPro platform has made "significant" progress during 2018.
It secured 23,994 orders during the year worth USD19.9 million, with an average order value of USD830.
Some 266 AI Mastermind members had placed at least one order on AIMPro, and 207 had made multiple.
Related Shares:
Altitude Group