Collaborate Corporation Limited (ASX: CL8) (Collaborate or the Company) advises that further to the announcement on 2 July 2019, a total of 66,666,667 options have been issued to strategic investor, Turners Automotive Group Limited (ASX: TRA; NZX: TRA) (Turners) as part of the placement which raised $1 million (Placement).
Pursuant to the Placement Collaborate issued 100 million fully paid ordinary shares in the Company (Shares) to Turners, at an issue price of $0.01 per Share. At the time of completing the Placement, the Company did not have sufficient placement capacity available under the ASX Listing Rules to issue the options. Following receipt of shareholder approval at the 2019 annual general meeting, Turners have been issued 66.67 million free attaching options on a two for three basis. The options have been issued on the same terms and ratio as the entitlement issue offer made to existing shareholders which completed in August 2019, having an exercise price of $0.015 per option and an expiry date of 18 December 2020 (Unquoted Options).
The strategic investment from Turners, a major player in the New Zealand automotive market, followed the Company's March 2019 launch of Carly, Australia's first flexible vehicle subscription service. The Placement was the first of a series of potential investments by Turners under the pillar of innovation and ventures, a sub-set of its broader strategy. The investment strongly fulfils Turners' investment criteria given its adjacency to Turners' existing business model, the potential synergies that exist between both companies and the exciting opportunity for Turners to participate in the rapid growth of the 'Sharing Economy' as it relates to transportation and changing consumer preferences.
In addition to the Placement, the parties have agreed an exclusivity period to negotiate the launch of a joint vehicle subscription service in New Zealand. A launch in New Zealand would enable Collaborate to leverage its existing investment in the technology platform supporting Carly and access a substantial new market with the support of Turners, the largest seller of cars in New Zealand. The negotiation of the operational and commercial terms for the launch in New Zealand are progressing well.
On 1 October 2019, Collaborate welcomed Mr Todd Hunter to the Board of Collaborate as a non-executive director, having been appointed to the Board by Turners. Todd has been Group CEO of Turners since July 2016. Todd is a strong and experienced senior executive, with a background in marketing, sales and accounting in both large global and domestic businesses (Ernst & Young, Microsoft and New Zealand Post). Todd joined the listed entity Turners Auctions in 2006 and became CEO of Turners Auctions in 2013. Turners Auctions was taken over in 2014 by listed entity Dorchester Pacific Finance which was then renamed to Turners Automotive Group. Todd was appointed Group CEO for the wider Turners Automotive Group business in 2016. Todd is a Chartered Accountant and holds a Bachelor and Diploma of Commerce from Auckland University.
Turners is a New Zealand based integrated automotive financial service group, primarily operating in the automotive sector, and provides strength in the three key areas of automotive retail, finance and insurance, and debt management systems.
About Collaborate Corporation Limited
Collaborate Corporation Limited is listed on the Australian Securities Exchange (ASX:CL8). It is Australia's leading listed company focused on 'collaborative consumption', 'peer-to-peer' or 'sharing economy' business model with a strong focus on mobility solutions. Collaborate's core business is www.DriveMyCar.com.au Australia's leading peer-to-peer car rental business, complemented by www.Carly.co, Australia's first flexible car subscription offering. Other businesses include www.MyCaravan.com.au a leading peer-to-peer caravan rental business and www.Mobilise.com a rental marketplace for under-utilised assets. Through our proprietary trust and reputation platform, www.peerpass.com.au we create 'trust' between individuals and make it possible for people and companies to safely transact with each other in the sharing economy.
About Turners Automotive Group Limited
Turners Automotive Group Limited is an integrated financial services group, primarily operating in the automotive sector www.turnersautogroup.co.nz
Tel: +61 2 8889 3641