RooLife is well funded after getting $1.7m investment from strategic investor
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The $1.7 million investment in RooLife made by Daniel Love will strengthen the company’s balance sheet even further following a record quarter.
China-focused digital marketing and e-commerce company, RooLife Group (ASX: RLG), has just raised $1.7 million, after securing a private placement to a strategic investor Daniel Love.
The placement was made directly to an entity controlled by Love called Mega Holdings, at 2.3c a share which was a 15 per cent discount to both the 5-day and 30-day value weighted average price (VWAP) of the stock.
RooLife will issue 74,000,000 new RLG shares to Love in return for the $1,702,000 investment.
This latest investment will take RooLife’s cash position to a solid $5.5 million and helps to further strengthen the balance sheet as it gears up for more expansion in 2022.
With an agricultural background, Love will further support RLG’s ambitions in the country following a record last quarter.
He has diverse business interests in agriculture, transport logistics, supply chain management, properties, and listed securities.
Importantly, Love has prior significant business dealings in China, where he was involved in the food demand and supply in the country from his farming and agriculture portfolio.
The decision to invest in RooLife was made following extensive discussions, and on the back of RooLife’s success in cross-border e-commerce for its core products of food, health, and well-being.
“I’m thrilled to have Mega Holdings become the number one shareholder of RLG at such an exciting time in RLG’s evolution,” Love said.
“With the strength of its unique sales-platform and management approach I can see this company growing to become a significant player providing front of the line supply and delivery within the greater Chinese online shopping community.”
RooLife said the fresh funds will be used towards the continued expansion and sales of the RLG platform, services, and general working capital.
The investment today was made following RooLife’s best quarter ever.
The company has just delivered a record Q3, reporting preliminary revenues of $3.4 million which was more than the entire financial year 2020.
This record performance has been driven by the Chinese consumers’ insatiable and continuing appetite for health and well-being products, especially for international brands that are produced in the West.
RooLife is also expecting a bumper Q4 and beyond.
“We are delighted Mr. Love has identified the value of investing into RLG at this pivotal time for our business,” said RLG CEO, Bryan Carr.
“We have just rounded out another financial year of significant achievements, and we are strongly positioned to deliver further growth and achievement in FY22.”
Carr added the company has a fantastic range of international brands and products which it is selling into the world’s biggest online shopping market.
According to estimates, the Chinese online market is huge and is worth a whopping $2.2 trillion – almost double the entire Australian GDP.
Carr said that RooLife is well positioned to benefit from this huge market as it is operating with proven and established platforms and systems, as well as a strong balance sheet to fund its expansion.
The company has developed a proprietary, profiling algorithm which analyses the behaviour of Chinese consumers, allowing brands to effectively drive sales based on consumer profiles and purchasing behaviours.
With a team of expert online marketers sitting in the city of Guangzhou, the company has been driving product sales for international brands through some of China’s biggest online marketplaces like TMall, Taobao, and JD.com.
This article was developed in collaboration with RooLife, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.