WELLINGTON: Online screening company CVCheck Ltd (ASX:CV1) has completed a $4.6 million share placement at $0.22 per share to fast track expansion into the New Zealand market and to drive growth initiatives within Australia. Funds generated from the capital raising will be deployed towards the completion of the acquisition of Resumé Check, a New Zealand based screening and verification business.
CVCheck provides police checks, employment screening and tenant checks for employers and individuals through its proprietary online platform, cvcheck.com. In addition to the share placement, CVCheck is offering shareholders the opportunity to participate in a share purchase plan at $0.22 per share, capped at circa A$3 million.
The acquisition of Resumé Check, for an upfront cash consideration of $1.51 million to be followed by performance based payments, is expected to be completed in July. The company generated FY2016 revenue of of NZ$1.1 million. CVCheck is in a fast growth phase, averaging 30% quarter-on-quarter growth in revenue over the past 8 quarters. The broader verification market in Australia is estimated to be about $350 million, with a $180 million contribution from CVCheck’s key focus, the police check market.
