- Enterprise fintech company 8common (8CO) has entered a trading halt today as it prepares to raise some fresh capital
- The company has not revealed how much it plans to raise, but the money will be raised through a placement to institutional and sophisticated investors
- At the end of September, 8common had $1.9 million in the bank after pulling in $940,000 in quarterly revenue
- Shares in the company are set to begin trading again on Thursday, October 22
- 8common shares last traded for 14 cents each yesterday afternoon
Enterprise fintech company 8common (8CO) has entered a trading halt today as it prepares to raise some fresh capital.
The company is yet to reveal exactly how much it plans to raise and for what it plans to use the new funds, but 8common’s shares will be back up for trade on Thursday, October 22.
Retail investors hoping to top up at a discount will be let down, however; 8common said the capital raise will involve a placement to sophisticated and professional investors.
The raise comes soon after 8common released its financial figures for the September quarter of this year. The company pulled in $940,000 in quarterly revenue, while cutting staff and corporate costs by some 26 per cent compared to the June quarter, resulting in a net cash inflow of a marginal $54,000.
The company had $1.9 million cash on hand at the end of the September quarter.
Fintech for business
8common’s focus is on expense management and easy payments for business and government customers.
The company has three core products: expense8, a travel expense management software; CardHero, a physical and virtual card to target integrated corporate payments and fund disbursement; and PayHero, for online payments and procurement payments.
Despite COVID-19 headwinds, 8common was able to sign on five Federal Government entities to expense8 and land a three-year deal with fellow ASX-listed EML Payments (EML) to issue prepaid Mastercards through the CardHero platform.
Since 2016, 8common has managed $2.1 billion in transactions, with $616 million of those managed in the 2020 financial year alone. According to the company, this represents growth of 350 per cent over four years.
Looking ahead, 8common said its $550,000 in software-as-a-service (SaaS) revenue continues to be impacted by COVID-19, but it’s holding steady and should grow over the December quarter as new implementations go live.
Shares in 8common last traded for 14 cents each yesterday afternoon. The company has a $25.61 million market cap.