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Credit Intelligence (ASX:CI1) plans $6M raise for global expansion

Finance
ASX:CI1      MCAP $9.685M
05 March 2021 11:40 (AEST)
Credit Intelligence (ASX:CI1) - Chairman, Jimmie Wong

Source: Credit Intelligence

Credit Intelligence (CI1) has received firm commitments from Clee Capital to raise $6 million in proceeds.

Through the capital raise, the company will issue 150 million shares to sophisticated and institutional investors at four cents each. 

Credit Intelligence has also proposed issuing one free attaching option for every two new shares issued during the raise. The free attaching options will have an exercise price of ten cents per share and will expire two years from the date of issue.

Credit Intelligence’s Executive Chairman, Jimmie Wong, commented that financial support produced during this capital raise will fund the company’s global expansion plans.

“During strong economic times, our lending business and YOZO business will perform well. In the event of economic downturn or recession, CI1 is uniquely placed to also thrive during these unfortunate times from our debt restructuring and credit repair businesses,” he said.

“These core CI1 businesses have long track records of success for many years in their current markets. CI1 is now embarking on exciting expansion plans for new and existing businesses in global markets,” he added.

Specifically, these plans involve the expansion of Credit Intelligence’s main business and YOZO buy-now-pay-later (BNPL) offering in their current markets of Australia and Asia. The company will also expand its Singapore lending business.

Primarily, proceeds from the capital raise will fund the expansion of Credit Intelligence’s debt restructuring business and YOZO BNPL into new global markets, such as the U.S. and U.K. 

Credit Intelligence will also the proceeds to fund the additional development of its YOZO technology, which will provide further support to the company’s expansion efforts. Some funds may also go towards existing business operations and costs related to the offer.

Credit Intelligence is down 4.08 per cent, trading at 4.7 cents per share at 10:32 am AEDT.

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