Arnold Bloch Leibler has acted for Australian online bookstore, Booktopia, on their $10.9 million capital raising by way of a two-tranche placement of shares and attaching options, alongside a debt to equity conversion and loan extension.
Booktopia has received commitments to raise approximately $9.3 million via a two-tranche placement of shares and attaching unquoted options. An extraordinary general meeting of shareholders will take place in August 2023 to approve the transaction. The proceeds of the raising will be applied towards the completion of 'Next Gen', a customer fulfilment centre in Strathfield expected to be operational in the coming months. The funding will also be used to enhance Booktopia's working capital position.
Corporate and M&A partner Jeremy Lanzer, senior associate Michelle Ainsworth and lawyers Chooi-An Khoo and David Wein advised on the transaction.
Jeremy congratulated the Booktopia team, saying: "We are pleased to have assisted Booktopia in achieving this successful outcome and look forward to seeing the impact it will have on their newest customer fulfilment centre."
Booktopia Chairman Peter George said: “After two years of losses, completing the Next Gen customer fulfilment centre and with the other business improvement initiatives already announced will reset the cost base of the business."