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FREELANCER LIMITED — Capital/Financing Update 2015
Aug 4, 2015
64924_rns_2015-08-04_3bbd7a8a-dad6-430e-ac47-c121da1d25e6.pdf
Capital/Financing Update
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ASX Announcement | 5 August 2015
Freelancer completes capital raising and selldown to increase free float to approximately 23%
Wednesday, 5[th] August 2015 - Freelancer Limited (ASX:FLN) ( Freelancer or the Company ) today announced the successful completion of a $10 million placement of ordinary shares to global and domestic institutional investors (the Placement ).
The Placement shares were issued at $1.40. This pricing is in line with the 5-day VWAP (until and including 31 July 2015). Proceeds will be invested in the business to take advantage of near term growth opportunities including, but not limited to, potential bolt-on acquisitions and acceleration of organic growth, and for general corporate purposes.
In response to strong demand, Freelancer’s original venture capital investor Simon Clausen and Freelancer's founder and CEO Matt Barrie have also sold $23 million and $12 million respectively of existing Freelancer shares alongside the Placement to institutional investors at the same price of $1.40.
The sale of a total of $35 million shares (the Share Sale ) represents approximately 10% of Mr Clausen's shareholding in Freelancer prior to the transaction and 4% of Mr Barrie's holding in Freelancer prior to the transaction. Post transaction Mr Clausen and Mr Barrie will hold 34% and 42% respectively of issued capital in Freelancer.
The Placement and Share Sale materially increases Freelancer's free float[1] to approximately 23% and introduces a number of new high quality institutional investors to the register. The Company welcomes these new shareholders and also thanks existing shareholders for their strong support for the transaction.
Freelancer.com founder and CEO Matt Barrie said, "I am thrilled that Freelancer is continuing to attract high quality institutions to its share register. As we continue to rapidly grow the Company, it is important that all shareholders benefit from increased market liquidity and a broadened share register. 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.”
"The $10 million Placement proceeds received by the company will enable us to continue investing in the business to fuel its rapid growth. We are also pleased that Freelancer is now generating positive operating cash flows, another milestone in the Company's development. The acquisition of Escrow.com is progressing as expected, and we will provide an update to the market upon completion."
Simon Clausen, founding venture capital investor and company Director said, "I am happy to support the company's need to increase market liquidity and broaden its shareholder base. As a Director and shareholder I look forward to the next stage of growth."
UBS AG, Australia Branch and Canaccord Genuity were Joint Lead Managers to the Placement and Share Sale.
Settlement of the Placement and Share Sale is currently scheduled to take place on Monday 10 August 2015, with allotment and quotation of shares expected to occur on the ASX on Tuesday 11 August 2015.
ENDS
Note:
(1) Assuming free-float excludes the shareholdings of Simon Clausen (via an investment company), Matt Barrie and unquoted Employee Share Plan shares
FREELANCER LIMITED | ACN 141 959 042 Registered Office: Level 20, 680 George Street, Sydney NSW 2000 Australia T +61 2 8599 2700 | E [email protected] | www.freelancer.com
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ASX Announcement | 5 August 2015
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For more information, contact:
Christopher Koch Deputy Chief Financial Officer & Investor Relations Tel: +61 409 788 637 Email: [email protected]
http://www.freelancer.com
About Freelancer
Eight-time Webby award-winning Freelancer.com is the world’s largest freelancing and crowdsourcing marketplace by total number of users and projects posted. 16 million registered users have posted 8 million projects and contests to date in over 850 areas as diverse as website development, logo design, marketing, copywriting, astrophysics, aerospace engineering and manufacturing. Freelancer Limited is listed on the Australian Securities Exchange under the ticker ASX:FLN.
FREELANCER LIMITED | ACN 141 959 042 Registered Office: Level 20, 680 George Street, Sydney NSW 2000 Australia T +61 2 8599 2700 | E [email protected] | www.freelancer.com