Openpay (ASX:OPY) raises $18.25m to accelerate “pathway to profitability”

• Buy now pay later group Openpay (OPY) completes its two-tranche placement and raises $18.25 million
• Roughly 76 million new fully-paid ordinary shares will now be issued to new and existing sophisticated institutional investors at 24 cents
• Openpay is also planning a share purchase plan (SPP) to raise a further $2 million with eligible shareholders able to subscribe for up to $30,000 worth of shares
• The money from the placement and SPP will be used to acquire new merchants and customers in Australia and New Zealand and enhance OPY’s technology and platform
• Openpay ends the day 8.47 per cent in the red with shares trading at 27 cents

Buy now pay later group Openpay (OPY) has completed its two-tranche placement and raised $18.25 million.

Roughly 76 million new fully-paid ordinary shares will now be issued to new and existing sophisticated institutional investors at 24 cents.

This price represents an 18.6 per cent discount to Openpay’s close on May 19 of 29.5 cents and a 21.9 per cent discount to the seven-day volume-weighted average price of 30.74 cents.

Subject to shareholder approval, Director Yaniv Meydan, or his associated entities, will invest $10 million under phase two.

If approval is received, Mr Meydan will hold roughly 65.8 million shares in Openpay.

Also subject to shareholder approval is the $100,000 investment by Chairman Patrick Tuttle.

With the placement complete, Openpay is now planning a share purchase plan (SPP) to raise a further $2 million.

Eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.

Shares will be priced the same as the placement of 24 cents.

The SPP will open on May 26 and close on July 11 with shares to be allocated and begin trading on the ASX on July 15.

Openpay will use the money from the placement and SPP to acquire new merchants and customers in Australia and New Zealand and enhance its technology and platform.

“Openpay ANZ is accelerating its pathway to profitability through sustainable growth, market-leading margins and business simplification. Australia is currently the engine room of the company and we remain focused on delivering this plan,” CEO Dion Appel said.

“We appreciate the strong and continued support shown by existing shareholders, and new investors for the placement and are pleased to welcome eligible shareholders to participate in the SPP on the same terms as the placement to further accelerate our strategy.”

Openpay has ended the day 8.47 per cent in the red with shares trading at 27 cents.