Join our daily newsletter At The Bell to receive exclusive market insights
- Earlypay (EPY) will expand its new Trade Finance product after successfully raising $18.86 million via a capital raise
- The fintech business first flagged raising additional funds after entering a trading halt on Wednesday
- EPY has since received commitments from investors to raise $18.857 million, with 44.9 million shares to be issued at 42 cents each
- Earlypay says the placement will help it enter into a new warehouse facility, before being added to its balance sheet
- EPY shares have resumed trading and ended Thursday’s session at 45 cents, down 6.25 per cent
Earlypay (EPY) will expand its new Trade Finance product after successfully raising $18.86 million via a capital raise.
The fintech business first flagged raising additional funds after entering a trading halt on Wednesday, June 23.
EPY has since come out of the halt and announced it’s received commitments from investors to raise $18.857 million.
Under the raise, just under 44.9 million EPY shares will be issued to investors at 42 cents each — a 12.5 per cent discount to the last traded price.
The company said the funds raised from this placement will help it enter into a new warehouse facility, advancing its new Trade Finance Product.
“Earlypay has continued its strong momentum in CY’2021, with our new Trade Finance product garnering significant demand from new and existing clients. Importantly, we expect the capital raise and product expansion to be earnings accretive in FY22” EPY CEO Daniel Riley said.
“The performance of the new Trade Finance product, combined with our record business lending volumes in established products, has provided strong validation for the board to endorse a capital raising to support the new business pipeline while a proposed $50 million warehouse facility to support the Trade Finance product is established.”
Once the warehouse facility has been secured, EPY said it’ll use the remaining capital raise funds to pay off debt or to explore acquisition opportunities.
EPY shares have resumed trading and ended Thursday’s session at 45 cents, down 6.25 per cent.
