No surprise as Collection House (ASX:CLH) completes capital raising

Today Collection House (ASX:CLH) have announced that they have raised $5.84m at 70.1c per share (last traded at 74c). $0.849m of which is actually part of the Dividend Reinvestment Plan (DRP), the rest from the actual capital raising itself.

A total of 8,343,413 shares will be issued diluting the stock by 7.8% and increasing to total number on issue to approximately 107m shares.

This should come as no great surprise. On 12th September 2011 I mentioned in a post comparing Collection House with Credit Corp (ASX:CCP):

One is just about debt-free and going great guns, and other is prodding along with high debt and potentially in danger of significant write-downs. If Collection House is to meet their target for the year of $60 - $70m ledger purchases, they will need to borrow further. And I wouldn't blink an eye-lid if they hit up the market with a capital raising.

My views on the company remain unchanged: It's still not investment grade and could face write downs. Credit Corp is a very different story.