Gumtree Australia Markets Limited · ASX:GUM
Gumtree Australia Markets — Investor Presentation (September 2019)
17 slides from Gumtree Australia Markets's investor presentation, Sep 25, 2019
Slide 1: Building a global finance news and retail investor relations platform
Building a global finance news and retail investor relations platform. The proposed acquisition of Stockhouse Publishing Ltd by HotCopper Holdings Ltd. 25th September 2019
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA This investor presentation (Presentation) has been prepared by HotCopper Holdings Limited (HotCopper). This Presentation has been prepared in relation to an non-renounceable entitlement offer of new fully paid ordinary shares
Slide 3: Disclaimer
Disclaimer All dollar values are in Australian dollars (A$). Any conversion between Canadian dollars and Australian dollars was done at a rate of $1.00 Canadian dollar equal to $1.11 Australian dollars. Investors should note that this Presentation contains pro forma historical financial information.
Slide 4: Executive Summary
Executive Summary HotCopper proposes to acquire Stockhouse Publishing as a key step in its strategy to grow a global finance news and investor relations platform. HotCopper has executed a share purchase agreement (Agreement) with Transaction Cherubim Investments Corp to acquire Canadian based Stockh
Slide 5: Offer overview
Offer overview CPS Capital Group Pty Ltd has been appointed lead manager and underwriter to a proposed 1 for 2 rights issue to raise AUD$6,954,025.13 at AUD$0.13 per share in HotCopper Holdings Limited.1 OFFER OVERVIEW The offer Details Lead Manager CPS Capital Group Pty Ltd (“CPS”) One (1) rights e
Slide 6: Sources and uses of funds
Sources and uses of funds The sources of funds are term debt, a rights offering, and minor contingent payments. Uses of funds are vendor payments as well as transaction expenses and additional liquidity. SOURCES AND USES Sources $CAD Uses $CAD Term Debt 11,000,000 Cash to Vendor 16,000,000 Rights Of
Slide 7: Indicative Transaction Timetable
Indicative Transaction Timetable The transaction timetable is indicative, subject to review and consents, and proposes the entitlement offer is announced 25th September and new shares trade on the ASX on Monday 21st October. TIMETABLE Event Date Entitlement Offer Announced Wednesday 25th Sept 2019 R
Slide 8: The transaction is a key driver of a strategy for growth
The transaction is a key driver of a strategy for growth At the November 2018 HotCopper AGM the company made clear a strategy for growth around defending its position, growing its offer and telling its story. The transaction drives these three goals. TRANSACTION DRIVES HOTCOPPER STRATEGY A strategy
Slide 9: The similar business and platform of HotCopper and Stockhouse
The similar business and platform of HotCopper and Stockhouse Both HotCopper and Stockhouse are digital forums and data platforms that help self directed investors find and discuss investment ideas. The operations and leadership position of both are similar. SIMILAR FORMATS AND MARKET LEADERSHIP Sim
Slide 10: The macro trends that drive the combined business
The macro trends that drive the combined business The combined business sits at the intersection of 3 key trends that will re-shape the way millions of people across the world research investments and make investments across all asset classes. MACRO TRENDS Macro Trends The future The business sits a
Slide 11: The strategic opportunity for the combined business
The strategic opportunity for the combined business The combined business will serve 2 out of 5 of the world’s largest exchanges by listings. The strategic opportunity is to leverage this global leadership position, increasing reach and share. ADDRESSABLE MARKET AND FUTURE MARKET Exchange Number of
Slide 12: The integration opportunity for the combined business
The integration opportunity for the combined business Though the two businesses will operate independently and retain their leading retail brands in each country, a digital first investor relations consulting brand – Advisir – will be launched across both. INTEGRATION OPPORTUNITY Investor Relations
Slide 13: Appendix A: Risks
Appendix A: Risks 1. Key risks This section sets out some of the key risks associated with HotCopper and its existing business; the Acquisition; and participation in the Offer and share ownership. The risks set out in this section are not listed in order of importance and do not constitute an exhaus
Slide 14: Appendix A: Risks
Appendix A: Risks 2. HotCopper risks con’t Customer service HotCopper's ability to maintain relationships with major customers is integral to its financial performance. This in turn depends on its ability to offer competitive service standards and pricing. Poor performance in either area may lead to
Slide 15: Appendix A: Risks
Appendix A: Risks 3. Acquisition risks Completion risks HotCopper may terminate the SPA in certain circumstances, including in the circumstance where certain conditions for the benefit of HotCopper have not been satisfied including if HotCopper does not raise sufficient funds under the Entitlement O
Slide 16: Appendix A: Risks
Appendix A: Risks 4. Stockhouse risks con’t Historical liability in respect of Stockhouse As the acquisition of Stockhouse is structured as a share sale, HotCopper may become directly or indirectly liable for any liabilities that Stockhouse has incurred in the past as a result of prior acts or omiss
Slide 17: Appendix B: International Offer Restrictions
Appendix B: International Offer Restrictions This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or
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