- Change Financial (CCA) launches a $5.72 million capital raising comprising of a placement and non-renounceable entitlement offer
- The placement will raise $750,000 through the issue of 15 million new fully-paid shares to new institutions, and sophisticated and professional investors at a price of five cents
- Change Financial will then undertake a one-for-four non-renounceable entitlement offer to raise the remaining $4.97 million with shares also priced at five cents
- The money from the placement and entitlement offer will be used to accelerate product enhancement and pay $750,000 of debt
- Shares in Change Financial are down 5.1 per cent and are trading at 5.5 cents at 2:34 pm AEST
Change Financial (CCA) has launched a $5.72 million capital raising comprising a placement and non-renounceable entitlement offer.
The placement will raise roughly $750,000 through the issue of approximately 15 million new fully-paid ordinary shares to new institutions, and sophisticated and professional investors at a price of five cents.
This price represents a 13.8 per cent discount to Change Financial’s closing price of 5.8 cents on July 29.
The placement is expected to settle on August 9 with shares to be allocated and begin trading on the ASX on August 10.
Change Financial will then undertake a one-for-four non-renounceable entitlement offer to raise the remaining $4.97 million. Shares will be priced the same as the placement of five cents.
Once received, the combined funds will be used to accelerate product enhancement, pay $750,000 of debt, provide working capital and cover the costs of the capital raising.
“This capital raising will enable us to execute on our growth plans, specifically enhancing our Vertexon Payments as a Service (PaaS) offering via increased issuing capability and connectivity along with targeted investment into sales and marketing strategies,” CEO and Managing Director Alastair Wilkie commented.
“Over the past 18 months the Change team has worked hard to establish core building blocks – partnerships, compliance, technology, and talent – to deliver on our goals.
“With these building blocks now in place, we are in a perfect position to grow the business from a strong foundation.”
Shares in Change Financial were down 5.1 per cent and were trading at 5.5 cents at 2:34 pm AEST.