Tech accelerator Scalare begins trading on the ASX
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The news: Scalare Partners has begun trading on the ASX under the ticker 'SCP' after completing a reverse takeover of confectionary manufacturer Candy Club.
The numbers: The company raised $4.3 million from new and existing investors, its board and executive team for investment and working capital. It had targeted $8 million. Scalare says services revenue is up 64% in FY24 compared to the year prior.
The stock was trading at 26 cents during morning trade.
The context: Established in 2020, the tech accelerator's path to the ASX was disrupted when the Australian Securities and Investments Commission (ASIC) staged an intervention, raising concerns that its IPO prospectus had not adequately disclosed the performance and valuation of its portfolio of early stage tech companies.
The stop orders were later lifted after ASIC satisfied the regulator's questions. Similar ASX vehicles like Touch Ventures have struggled on the bourse, with other VCs telling Capital Brief that Scalare's listing "makes no sense" and questioning its model.
Scalare chief executive Carolyn Breeze hit back, saying that Scalare would provide early tech investment access to retail investors who have historically missed out.
The source: ASX announcement
