- Cashwerkz (CWZ) receives commitments from sophisticated and institutional investors to raise $14 million
- Roughly 51.8 million shares will be issued in two tranches at a price of 27 cents each
- The placement includes a $2 million commitment from several directors and senior management figures
- A portion of the proceeds will be used to acquire a 25 per cent stake in global investment manager Tactical Global Management
- Shares in Cashwerkz last traded at $0.33 each on Tuesday, June 8
Cashwerkz (CWZ) has received commitments to raise $14 million, which the financial services firm will use to bolster its global expansion plan.
The placement, led by Sydney-based brokerage firm Blue Ocean Equities, will see roughly 51.8 million shares issued to sophisticated and institutional investors at 27 cents each.
Around 22.1 million shares will be issued under the first tranche, raising $6 million, while the second tranche — which remains subject to shareholder approval at a meeting planned for July — will consist of 29.7 million shares for a further $8 million.
Notably, the placement includes a $2 million commitment from several directors and senior management figures at Cashworkz, which also remains subject to shareholder approval.
“We are delighted with the support shown by our existing investors and new institutional investors, with demand for the placement far exceeding the funds raised,” said chief executive Jon Lechte.
“It is great to see more fund managers coming into the deal, proudly we will have more than ten professional investment firms on our share register.”
The proceeds will be used to acquire a 25 per cent stake in global investment manager Tactical Global Management, which is expected to boost the growth of the company’s FundIncome business.
Cashwerkz said a portion of the funds will also be used to scale its Treasury Management Services, which offers a unique method of managing cash, credit securities, currency and equities.
“The new capital will help accelerate the growth of our business and we look forward to updating the market as we scale and expand into new high growth areas,” Mr Lechte added.
Shares in Cashwerkz last traded at $0.33 each on Tuesday, June 8.