Shares in online retailer MySale rose 28% on Thursday morning after the group revealed that the founders of one of Australia’s most successful e-commerce players have become substantial shareholders. Gabby Leibovich and Hezi Leibovich, founders of Catch.com.au and Nati Harpaz, the former-CEO of the same business, have agreed to invest around £5.1 million into MySale through a share acquisition.
The 85.2 million new ordinary shares, acquired at a 6p per share, represent 10% of the company’s existing issued share capital.“This investment will further enhance MySale's ANZ First Strategy as we seek to scale our marketplace platform with leading brands across a wide range of new categories to complement our already established international and domestic fashion, footwear, accessories, and beauty categories,” said Carl Jackson, CEO of MySale.
The AIM-listed group, which operates retail sites in Australia, New Zealand, and South-East Asia, said the agreement comes at a favorable time for the business as Covid-19 disruptions have forced international brands to look for a counter-seasonal solution to shift excess stock.
“As a business, we are well-positioned to take advantage of the accelerated shift to online and, as the quality and number of partners working with us continues to grow, we stand to capitalize further from this long term structural change,” Jackson added.
“We have experienced a strong start to the year as we enter the peak trading season. During the past year, we have restructured our cost base taking out significant unnecessary costs, improved the margins, and are now moving to scale the business.”
MySale, which is behind e-tail websites like OzSale and BuyInvite, added that it has been cash positive for the last six months.