Why is the Airtasker share price edging higher today?

Person pointing at an increasing blue graph which represents a rising share price.Person pointing at an increasing blue graph which represents a rising share price.

Despite the All Ordinaries (ASX: XAO) being down today, the Airtasker Ltd (ASX: ART) share price is pushing higher.

This comes after the company provided an update regarding its capital raising and acquisition prior to market open.

The online marketplace company’s shares are swapping hands at 45 cents, up 1.12%.

For context, the broader ASX index is trading at 7,229.1 points, down 0.80% following the recent market downturn.

What did Airtasker announce?

Investors are bidding up the Airtasker share price following the company’s deferred shareholding dilution.

In its statement, Airtasker advised that it has received an enquiry from the Australian Competition & Consumer Commission (ACCC) in relation to the proposed $9.8 million acquisition of Oneflare.

Founded in 2012, Oneflare is an Australian online marketplace that connects businesses with customers. The company has facilitated over 2.8 million matches across 150 service categories for job requests to be serviced by professionals.

While the enquiries in relation were not mentioned in detail, Airtasker stated it was working closely with the ACCC.

In addition, management decided to delay the $6.25 million settlement of the equity placement announced on 4 May.

This inevitably puts the Oneflare acquisition currently on hold as discussions between Airtasker and the ACCC play out.

Furthermore, the $1.2 million share purchase plan tailored to retail investors has also been put on ice for now.

About the Airtasker share price

Over the past 12 months, the Airtasker share price has lost almost 60%, with year to date down 46%.

It’s worth noting that regardless of today’s rise, the company’s shares hit an all-time low of 43 cents yesterday.

Based on valuation grounds, Airtasker commands a market capitalisation of roughly $187.33 million.

The post Why is the Airtasker share price edging higher today? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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