SYDNEY, AUSTRALIA: RPM Automotive Group has executed an agreement with Collins St Value Fund (CSVF) for an equity placement of $2.5 million at 30 cents per share, a slight premium to the current share price.
Additionally, CSVF has agreed to provide a $5.5 million CN (subject to shareholder approval for the conversion of the CN which will be sought at a general meeting to be convened for this purpose).
The CN is convertible at 35 cents per share by CSVF at any time over the term of the CN. The CN is convertible at 35 cents per share by RPM at its discretion if RPM’s share price trades at $0.50 or higher for 30 consecutive days.
The CN pays a coupon rate of 3.5% pa quarterly in arrears in cash or shares (issued at the 30-day VWAP) at the Company’s discretion.
RPM Co-founder and Managing Director Clive Finkelstein said: “Over the next 12 months RPM Automotive Group intends to continue its strategy of growth via strategic acquisitions. This funding package has been set on attractive terms to our shareholders and provides RPM with the capital necessary to take advantage of attractive M&A opportunities while introducing a well-respected institutional investor onto our register.”
CSVF Founder and Chief Investment Officer Vasilios Piperoglou said: “As a concentrated fund we don’t back many teams. RPM Automotive Group have proven that they possess the right entrepreneurial management team and maintain a sustainable and scalable business model. Especially in today’s markets, we are thrilled to have identified and invested in RPM, a company that offers a great growth strategy, and appears to offer clear value.”
Founded by Michael Goldberg and Vasilios Piperoglou, the Collins St Value Fund is a concentrated portfolio of the team’s highest conviction ideas. Having opened to the public in 2016, the Fund has regularly featured among the best performing Australian equity mandates in the country.
Currently ranked No.1 by Morningstar in its category over 1, 3 and 5 years, the Fund ranked No.1 across all Australian equity mandates by Mercer for 2020 and ranked 2nd for FY2021. www.csvf.com.au
RPM Automotive Group Limited (ASX: RPM) is a leading player in the Australian Automotive Aftermarket, comprising a number of businesses involved in importing, wholesaling and retailing of tyres, mechanical repairs, motorsport apparel and safety equipment, niche manufacturing and a roadside assistance service for the transport industry. RPM owns brands, such as: RPM Racewear, Carline, Genie, Air Anywhere, Formula Off-Road, RPM Autoparts.
Rpm Automotive Group Ltd share price
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19 Aug, 4:10 pm GMT+10 ·Disclaimer