PayGroup (ASX:PYG) to raise $3.5M to fund growth

• Software as a Service (SaaS) company PayGroup (PYG) has received firm commitments to undertake a $3.5 million placement
• The $3.5 million will be raised through the issue of six million fully paid ordinary shares to sophisticated and institutional investors at a price of 58 cents each
• PayGroup will use the money to support its growth plans and pursue additional strategic partnerships
• Shares are expected to settle on September 8 and begin trading on the ASX on or around September 9
• PayGroup has dropped 10.3 per cent on the market and shares are trading for 61 cents each

Software as a Service (SaaS) company PayGroup (PYG) has received firm commitments to undertake a $3.5 million placement.

The company entered a trading halt yesterday but did not know how much it would be raising at the time or what the funds will go towards.

The $3.5 million will be raised through the issue of six million fully paid ordinary shares to sophisticated and institutional investors at a price of 58 cents each.

PayGroup will use the money to support its growth plans and enable it to realise additional strategic benefits from the acquisition of Astute One and TalentOz.

“The placement will allow PayGroup to capitalise on immediate growth opportunities in our pipeline and extract greater value from the Astute One and TalentOz businesses as we further enhance our technology,” Managing Director Mark Samlal said.

“This additional capital will also allow us to pursue additional partnership and customer opportunities, and opens the possibility of further acquisitions, building on the momentum of the past year which has seen our annual recurring revenues grow from $8.4 million in FY19 to $17.8 million in FY20,” he added.

Shares are expected to settle on September 8 and begin trading on the ASX on or around September 9.

PayGroup has dropped 10.3 per cent and shares are trading for 61 cents each at 1:33 pm AEST.