Overview of Toys'R'Us ANZ's private placement and strategic acquisition

Toys'R'Us ANZ Limited (ASX: $TOY) has announced a private placement to Mercer Street Global Opportunity Fund II LP and a strategic acquisition of the key assets of 50-year-old Arts and Crafts Retail brand RIOT. The private placement involves the issuance of up to 21,276,596 new shares at an issue price of $0.0094 per new share to raise a maximum of approximately $200,000 before costs. Additionally, the company has entered into an unsecured loan with Mercer for $600,000, executed an agreement for the strategic acquisition of RIOT, and entered into an unsecured loan with TOY CEO Penny Cox for $100,000. The offer price of $0.0094 under the placement represents a 14.54% discount to the company's 15-trading day VWAP on 19 March 2024 of $0.011. The company has undertaken the placement to fund its short-term working capital requirements and to remove any trading restrictions on the sale of new shares issued under the placement.

Executive commentary on the private placement and strategic acquisition

The private placement and strategic acquisition mark significant milestones for Toys'R'Us ANZ. The private placement will provide the necessary capital to support the company's short-term working capital requirements, while the strategic acquisition of RIOT's key assets aligns with our expansion plans and diversification strategy. The unsecured loan with Mercer and TOY CEO Penny Cox demonstrates the confidence and support from our strategic partners and leadership team. We are optimistic about the potential of these initiatives to drive growth and value creation for our shareholders.

Summary of Toys'R'Us ANZ's corporate strategy and outlook

Toys'R'Us ANZ's private placement and strategic acquisition reflect the company's commitment to strengthening its financial position and expanding its business operations. The capital raised through the private placement will be primarily used to fund the company's short-term working capital requirements, while the strategic acquisition of RIOT's key assets presents an opportunity for diversification and growth. The unsecured loan agreements with Mercer and TOY CEO Penny Cox further demonstrate the company's efforts to secure the necessary funding for its strategic initiatives. Looking ahead, Toys'R'Us ANZ aims to leverage these developments to drive its corporate strategy, enhance its market position, and deliver long-term value to its stakeholders.