ApplyDirect Limited (ASX: AD1) operates an online recruitment portal. The Company offers a job portal that connects job seeker and the employer. It provides an online database and search platform that links employers and job candidates directly to live job opportunities on employer Websites. ApplyDirect serves customers in Australia.
The company has via a recent ASX release stated the details regarding the execution of a non-binding term sheet for the proposed acquisition of Utility Software Services Pty Ltd (USS), the Proposed Acquisition and a capital raising (Placement).
Since the Company's ASX announcement on 26 November 2018, it has been progressing its due diligence investigations into USS for the Proposed Acquisition and negotiating the terms of the Proposed Acquisition with the shareholders of USS. The company is currently well advanced in this process and will continue to progress with the Proposed Acquisition. The company has a view to rounding out the process in the short term with both parties currently using best endeavours to advance the Acquisition on time. This is done for executing the binding transaction documents by no later than early January 2019.
As previously disclosed, the Company is considering a capital raising by way of a placement of new fully paid ordinary shares in the Company to Australian based investors (Placement). The Placement is expected to be undertaken in early 2019, with the proceeds to be used primarily for general working capital purposes.
For the September quarter, cash receipts came in at $ 630,000, up by 93% on the previous corresponding period and up by 25% on the previous June 2018 quarter. The net cash outlays from operating activities in the quarter were $1,181,000 down from $1,240,000 in the June 2018 quarter. The company expanded its foothold within the Government and Large Enterprise market segments. During the stated period, the company was also successful in the integration of VicRoads and the Department of Education with the CAREERS.VIC jobs portal.
One of the companies, named First State Super extended its media contract for a further 12 months period following strong results delivered in the 2018 financial year (FY2018). The company also completed the capital raising of approximately $1 million, with director's contributions, which is still subject to shareholder approval at the Company’s Annual General Meeting.
Company’s CEO, Lorcan Barden, said that the first quarter of the 2019 financial year has once again demonstrated the progress that the Company is making on its business objectives. The company was able to do this with significant new client wins and continuing the acceleration of revenue growth from the second half of FY2018.
The CEO reiterated that the deepening of the company’s government relationships and the realization of new corporate opportunities during the quarter is quite encouraging. The company anticipates having numerous potential wins in the latter stages of the sales cycle.
Meanwhile, the share price of the company has fallen by 51.06 percent in the past six months as on 20 December 2018. AD1’s shares traded at $0.023 with a market capitalization of circa $5.70 Million as on 21 December 2018.
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