Snowball set for growth
Shareholders of theSnowball Grouphave presented no obstacle to a $1.3 million dollar capital raising designed to drive growth and acquisition opportunities within the company.
At the group’s annual general meeting on Monday, shareholders approved the growth of capital base through an underwritten rights issue and placement.
The company flagged the capital raising in June this year, saying it would enable it to move more quickly towards profitability and pursue its objectives of scale by possibly acquiring or merging with a third party.
Snowball chairman Andrew Brown says the group is now in a stronger position to capitalise on its initiatives in the area of financial education and advice, growing to over $550 million in funds under advice and administration “despite the difficult trading conditions last year”.
The green light was also given to the unwinding of various call option arrangements between shareholders and the company’s venture capital partner, Equity Partners, which the group says will simplify its underlying capital structure.
Brown says the group is looking to improve cash flow performance over the next year with changes to its financial structure.
The group is in the process of promoting its online financial education and advice tool (the ‘Green Zone’), which it says has received a high degree of interest in light of reports of the $600 billion funding gap of retirement income.
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