Thrive Tribe Issues 60 Million Shares at 20% Discount to Raise $250K
Thrive Tribe Technologies has raised approximately $250,000 through a discounted share placement, aiming to bolster its working capital. The move reflects ongoing efforts to support its health and wellness digital platform.
- Raised ~$250,000 via placement of 60.2 million shares
- Shares issued at 20% discount to recent volume-weighted average price
- Funds earmarked for general working capital and placement costs
- Clee Capital appointed as lead manager with fees agreed
- Shareholder approval secured in July for the placement
Capital Raising Details
Thrive Tribe Technologies Limited (ASX, 1TT), a player in the health and wellness digital platform space, announced a capital raising of approximately $250,000. The company will issue over 60 million new shares at a price of $0.004153 each, representing a 20% discount to the recent five-day volume weighted average price. This placement follows shareholder approval granted in mid-July, underscoring the company’s commitment to maintaining transparency and governance standards.
Purpose and Use of Funds
The funds raised are intended primarily for general working capital and to cover the costs associated with the placement itself. While the announcement does not specify detailed strategic initiatives, this injection of capital is likely aimed at sustaining operational momentum and supporting the company’s core technology platform, Kumu, which focuses on connecting creators, businesses, and individuals within the health and wellness community.
Role of Clee Capital and Fee Structure
Clee Capital Pty Ltd has been appointed as the lead manager for this placement. In return for their services, Thrive Tribe will pay a management fee of 2% plus GST and a capital raising fee of 4% plus GST on the amount raised. This arrangement reflects standard industry practice for capital raises of this size and nature, ensuring professional oversight and execution of the placement.
Strategic Implications
Thrive Tribe’s decision to raise capital at a discount signals a pragmatic approach to securing necessary funds in a competitive market environment. While the amount raised is modest, it provides a timely boost to liquidity and operational capacity. Investors will be watching closely to see how the company leverages this capital to advance its platform and whether further funding rounds may be necessary as it scales.
Looking Ahead
With the placement shares now set to be issued, Thrive Tribe Technologies is positioned to continue its mission of fostering a connected health and wellness community. The company’s leadership, including Executive Director Wes Culley and Director Joshua Quinn, will likely focus on translating this capital injection into tangible growth and engagement on the Kumu platform.
Bottom Line?
This capital raise provides a short-term lifeline, but Thrive Tribe’s next moves will be critical to sustaining investor confidence.
Questions in the middle?
- How will Thrive Tribe specifically allocate the new funds beyond general working capital?
- What impact will the share placement have on existing shareholder dilution and share price?
- Are there plans for further capital raises or strategic partnerships in the near term?