- Credit Corp (CCP) has opened its $30 million share purchase plan after successfully raising $120 million through a placement
- Money raised from both the placement and share purchase plan will be used to enhance Credit Corp’s balance sheet, increase liquidity, and reduce debt
- In regards to the share purchase plan, eligible shareholders are able to purchase up to $30,000 worth of shares
- If more than $30 million is raised, then Credit Corp has the right to scale back the number of shares each shareholder can purchase
- Credit Corp is up a slight 3.5 per cent on the market and shares are trading for $14.78 each
Credit Corp (CCP) has opened its $30 million share purchase plan after successfully raising $120 million through a placement.
On April 29, Credit Corp announced it would undertake a placement and share purchase plan.
The company stated the money raised would be used to enhance its balance sheet, support the business during the current uncertain market conditions, increase liquidity, and reduce debt.
Shares in the placement were priced at $12.50, which represented an 11 per cent discount to the closing price on April 28 of $14.14, and a 10.5 per cent discount to the five-day volume-weighted average price.
The next day, Credit Corp announced that it had completed the placement.
Shares settled on May 4 and were allocated and could begin trading on the ASX on May 5.
This share purchase plan is allowing eligible shareholders to purchase up to $30,000 worth of shares without receiving any brokerage or transaction costs.
The price of shares will be less than the $12.50 seen in the placement.
The share purchase plan opens today, May 8, and will close on June 2.
If more than $30 million is raised then Credit Corp has the right to scale back the number of shares each shareholder can purchase.
COVID-19 update
Like many other companies, Credit Corp has completely withdrawn its 2020 earnings and guidance as a result of COVID-19.
On March 20, the debt collector announced that it was meant to rake in between $81 and $83 million in net profit after tax but for the full 2020 financial year but this figure is uncertain now.
Due to uncertain market conditions, Credit Corp couldn’t provide a new figure.
Credit Corp is up a slight 3.5 per cent on the market and shares are trading for $14.78 each at 12:58 pm AEST.