HiTech Group raises $2.8M placement to fund transformational Hudson buy
What's the deal? HiTech Group AustraliaDealroom has a profile for this one. Try Dealroom → (ASX:HIT) has secured firm commitments to raise US$2.59M (roughly $2.8 million) before costs through a share placement, funding working capital after its acquisition of selected assets from Hudson Global ResourcesDealroom has a profile for this one. Try Dealroom →. The company will issue 4 million new shares at US$0.65 each.
The terms: The US$0.65 offer price is a 9.9% discount to HIT's last close of US$0.72 on September 11, 2026, and a 13.3% discount to the five-day volume weighted average price. Blue Ocean EquitiesDealroom has a profile for this one. Try Dealroom → acted as sole lead manager and bookrunner. Settlement is expected September 22, with new shares allotted the following day.
Why now? The raise completes the funding structure for the Hudson deal, which HiTech settled on September 11. Total sources amount to US$14M: US$4.98M of HiTech cash, a US$6.47M term loan, and the US$2.59M placement.
Where the money goes: Of the US$14M in total uses, US$3.3M covers upfront consideration and US$5.24M refinances an existing Hudson facility. Transaction costs take US$1.29M, with US$4.21M earmarked for working capital and balance sheet flexibility.
What's the endgame? Managing director and chief executive officer Elias Hazouri called the acquisition "transformational," saying it creates a national recruitment and professional services platform with about US$139.8M in pro forma combined revenue. He said the funding structure preserves a significant portion of HiTech's cash reserves while supporting working capital needs.
The signal: By blending cash, debt, and equity, HiTech is consolidating in Australia's recruitment sector while keeping room for accelerated debt paydown — a measured approach to scaling through acquisition.
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