WCO - Acquisition of Civic Waste, Convertible Note & SPP

Friday 22nd November 2024

WasteCo Group Limited (NZX: WCO ) has entered into a $9m conditional agreement to acquire 100% of the shares in Civic Waste Limited, a leading North Island-based waste management company. This acquisition will provide WasteCo with an expanded geographic footprint and additional operational scale, contributing approximately NZD $20 million in revenue over the next 12 months.

Convertible Note Investment by Empire Waste Technology Limited

Empire Waste Technology Limited, an investment vehicle of Simon and Paula Herbert, has agreed to subscribe to a $15 million convertible note issued by WasteCo (“Notes”). The funds from the issue of the Notes will fund the Civic Waste acquisition, and provide working capital for WasteCo to fund further acquisitions and otherwise strengthen its balance sheet. The Notes have a five-year term, bearing 6% annual interest, and provides Empire with the option to convert the Notes into equity at $0.02 per share at any time during the term.

Planned Share Purchase Plan for Existing Shareholders

WasteCo plans to offer a Share Purchase Plan (SPP) to allow existing shareholders to participate in the company’s growth at $0.02 each. The SPP aims to raise up to $5 million, subject to shareholder approval intended to be sought in December 2024.

Refer to attachment for detailed information on transactions

Acquisition of Civic Waste, Convertible Note & SPP

Comments from our readers

No comments yet