Schoolblazer launches $5.325M placement to cut debt and strengthen its balance sheet
Schoolblazer Limited (ASX: SBZ) has received binding commitments to raise A$5.325 million (before costs) through a placement, with strong support from institutional investors. Proceeds are intended for partial repayment of the IFM debt facility, working capital and the costs of the offer.
The Placement includes A$1.75 million of commitments from Directors (the Director Participation), which is subject to shareholder approval. Blue Ocean Equities and E&P Capital acted as Joint Lead Managers.
Approximately 53.3 million new fully paid ordinary shares (New Shares) will be issued at A$0.10 per New Share (the Placement Price). That represents a c13.0% discount to the last closing price of A$0.115 on Thursday, 29 October 2026, the last trading day prior to the trading halt.
Schoolblazer shares are expected to resume normal trading on ASX from market open on Tuesday, 3 November 2026. Institutional backing alongside Director commitments gives investors a view of insider alignment with a raise aimed at reducing debt.
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How the placement is structured
The Placement completes in two tranches, with the second including a component that needs shareholder approval.
| Tranche | New Shares | Amount raised | Basis | Approval |
|---|---|---|---|---|
| Tranche 1 | **14.4 million** | c**A$1.44M** | Unconditional placement, ASX Listing Rule 7.1 | None required |
| Tranche 2 (non-director) | c**21.3 million** | c**A$2.13M** | ASX Listing Rule 7.1 | No shareholder approval required |
| Tranche 2 (Director Participation) | **17.5 million** | **A$1.75M** | ASX Listing Rule 10.11 | Shareholder approval required |
Tranche 2 in total comprises approximately 38.8 million New Shares, raising approximately A$3.88 million.
- New Shares will rank equally with existing Schoolblazer shares.
Debt reduction and use of proceeds
Proceeds of the Placement will be applied to the following:
- Partial repayment of the IFM debt facility
- Working capital
- The costs of the offer
Schoolblazer states the Placement serves to strengthen its balance sheet. In conjunction with a $15.0 million term debt reduction from existing cash during September 2026, the Company states it has materially reduced its outstanding debt and is well positioned for FY27, as outlined in the Investor Presentation also released on ASX on Tuesday, 3 November 2026.
Schoolblazer’s FY27 EBITDA guidance of A$18-20m on A$170-180m revenue rests on A$4m of confirmed cost savings, with operating cash flow between March and September 2026 already reducing net bank debt by about A$10m.
Understanding placements and ASX Listing Rule capacity
A placement is a capital raise where a company issues new shares directly to selected investors, such as institutions, rather than offering them to all shareholders. Companies can use existing placement capacity under ASX Listing Rule 7.1, which allows a limited number of new shares to be issued without a shareholder vote.
Directors taking part in a placement is treated differently. Under ASX Listing Rule 10.11, shares issued to directors require shareholder approval, which is why the Director Participation depends on a General Meeting. For investors, the relevant points are dilution from the additional shares, the c13.0% discount to the last close, and the alignment shown by Directors committing capital.
Key dates for Schoolblazer shareholders
- Tuesday, 3 November 2026: Schoolblazer shares are expected to resume normal trading on ASX from market open (Company).
- Monday, 9 November 2026: Tranche 1 settlement is expected.
- Tuesday, 10 November 2026: Tranche 1 allotment and normal trading of New Shares.
- Mid-December 2026: The Company expects to convene a General Meeting to seek approval for the Director Participation.
- Following the General Meeting in December 2026: Tranche 2 is expected to settle, subject to shareholder approval for the Director Participation component.
About Schoolblazer
Schoolblazer Limited (ASX: SBZ) is the holding company of Schoolblazer Group, a technology-led, vertically integrated global schoolwear and sportswear business. The Group has school relationships across the UK, Australia and New Zealand, with a portfolio of brands including Schoolblazer, Trutex, Limitless and Akoa.
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