- Business management app provider 9Spokes (9SP) will raise up to $10 million to be settled through a two-tranche placement
- In total, over 277 million shares will be issued at 3.6 cents to institutional investors
- The second tranche is, however, subject to shareholder approval
- Funds from the placement will see continued focus on building new banking partners and progressing the global rollout of 9spokes.com
- Additionally, 9Spokes has appointed BDO as its interim auditor, replacing PwC
- 9Spokes closed 6.82 per cent in the red to trade for 4.1 cents
Business management app provider 9Spokes (9SP) will raise up to $10 million through a two-tranche placement.
The placement received support from existing institutional shareholders, such as Alium Alpha Fund, as well as a few new Australian-based institutional investors.
Over 277 million shares will be issued at 3.6 cents, representing a 6.9 per cent discount to the 10-day volume-weighted average price.
Tranche one will consist of about 166 million shares being issued, with settlement expected on September 3 and allotment the following day.
The second tranche will issue approximately 111.8 million shares, with allotment due on September 29. However, this is subject to shareholder approval with a meeting planned for September 23.
Funds from the placement will support 9Spokes’ focus on building new banking partners and progressing the global rollout of 9spokes.com.
9Spokes CEO, Adrian Grant, said the placement had secured the company’s cashflow and boosted its ability to develop new and existing relationships.
‘This capital raise secures our cash runway into FY23, enabling us to focus on continuing to support SMBs, evolve our platform, and deliver new bank customers through key global partnerships,’ he said.
“Discussions with potential banking clients under the Visa partnership are already underway and we see this as a great opportunity given Visa has a global distribution network of 15,500 financial institutions.”
Additionally, 9spokes has appointed BDO as its interim auditor who will replace PwC. The company will confirm BDO’s term after the annual meeting in September.
9Spokes closed 6.82 per cent in the red to trade for 4.1 cents.