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- Eftpos provider Smartpay (SMP) has closed its $2 million share purchase plan after a highly successful run
- The company said the plan was hugely oversubscribed, with applications totalling close to $12 million
- The shares were sold at a price of 42 cents per share
- The funds raised through the plan, as well as a recent placement, will be applied to growth opportunities, general working capital and debt repayments
- Smartpay shares are trading at 60 cents per share, up 16.5 per cent
Eftpos provider Smartpay (SMP) today announced it has closed its $2 million share purchase plan, after receiving demand almost six times higher than expected.
The company said the applications received for the plan totalled $11.95 million, well above the target of $2 million, which was announced on June 2, 2020.
The money raised from the plan will be combined with the $13 million raised from a recent placement, and be used to grow the company in Australia and New Zealand, as well as for paying off debt and general working capital.
The shares on offer via the plan were priced at 42 cents each and Smartpay said it will scale back the applications on a proportionate basis, depending on how many shares were help by the applicants on the record date, May 28, 2020.
The share purchase plan is likely to be settled on June 23, 2020, with shares to be allotted shortly after that.
Smartpay said the new shares will rank equally with existing ordinary shares.
Shares in the company are currently trading at 60 cents per share, a rise of 16.5 per cent.
