CCR announced today their purchase of ARC Europe, debt collection agency for $10.9m through 6.8m cash, 1.8m cash, 2.3m in new shares along with deferred earnout opportunities.

The company is raising $20.75m (additional 92m shares) to fund this purchase and other growth initiatives, resulting in a circa 20% dilution.

The deal will be expected to be EPS Accretive, with EBITDA of $1.24m for next FY, although will need to get some further financials to confirm if this will push them to positive NPAT.

While there was no opportunity for us poor retail investors to purchase shares at 25c, the Chair Paul Dwyer is looking to materially increase his stake in the business from 2.3% to 8.2% under a second tranche of issues subject to shareholder approval

As a result of the deal and Chair's increased shareholding pushed the price up to 7% today to .29c. Will be interested to see if there is another small acquisition on the cards in the UK to go along with this purchase.

Disc: 2% holding IRL and SM