Candy Club (CLB) Q4 2024 TU earnings summary

Executive summary

• Announced proposed acquisition of Scalare Partners Pty Ltd, with a Merger Implementation Deed and Share Sale Agreement executed.

• Plans include a 56-for-1 share consolidation, name change to Scalare Partner Holdings Limited, and capital raising of $4M–$8M.

• 72 million ordinary shares to be issued to Scalare vendors upon transaction completion; re-compliance with ASX Listing Rules sought.

• 2024 AGM resolutions: adoption of remuneration report, appointment of new auditors, and election of James Walker as non-executive director.

Financial highlights

• Net cash used in operating activities was $(42)k for the quarter and $(67)k for the six months ended 30 June 2024.

• Cash and cash equivalents at quarter end were $1k.

• No receipts from customers or other significant cash inflows reported.

Outlook and guidance

• Preparing a prospectus to raise $4M–$8M and seeking ASX readmission.

• Expects to minimize costs during recapitalization; existing shareholders to provide interim funding.