05.11.2020

CML Group (ASX:CGR) Raises $3.5m via Placement

Henslow is pleased to have acted as Lead Manager to the $3.5m placement for CML. The raise was completed at an issue price of $0.328 per share to institutional and professional investors. Funds raised will be used to support the company’s cash position to fund growth in its loan book. The quantum raised and the pricing of the placement represented the shortfall under CML’s recent Dividend Reinvestment Plan.

CML assist SMEs with their cashflow by funding their invoices and equipment. CML services over 3000 SMEs funding over $1.7bn of invoices per annum and has an equipment finance book of over $100m.

Operating under the name CashFlow Finance and Classic Funding Group, but to be renamed earlypay, CML provides invoice factoring, invoice discounting and equipment finance. Through invoice financing CML provides an advance payment of up to 80% of a client’s invoice to help their business overcome the cash pressure of delivering goods or services in advance of payment from their customers (approx. 30 to 60 days).

“The Company decided to place the shortfall as we want to conserve our cash position to fund growth in the loan book. CML is experiencing an uplift in new business enquiries and lending volumes and is well positioned support SME’s with working capital solutions as the economy starts to rebuild” – CEO of CML, Daniel Riley

The Henslow team has helped raise over $97.0m through multiple funding rounds and numerous acquisitions. We have been CML’s lead corporate and strategic advisor for over six years, continually looking for the next opportunity to grow. Whatever is needed to expand the business, we find a fit-for-purpose strategy, as their trusted finance partner, with over $2.0bn of funding traded annually through their platform.

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