- Buy now, pay later competitor Sezzle (SZL) is aiming to raise $86.3 million to accelerate its growth
- The company will raise the money through a placement and share purchase plan (SPP)
- For the placement, the company will issue 15.8 million CHESS Depositary Interests (CDIs)
- The CDI pricing will be based off a bookbuild process, with an underwritten floor price of $5 each
- Following the completion of the placement, Sezzle will offer existing eligible CDI holders the opportunity to participate in the SPP
- Sezzle is currently in a trading halt, with last trade for $6.95 per share on July 9
Buy now, pay later competitor Sezzle (SZL) is aiming to raise $86.3 million to accelerate its growth.
The company will raise the money through a placement and share purchase plan (SPP).
Funds raised will go towards sales and marketing, product enhancement, international expansion and strengthening the balance sheet.
Placement
Sezzle has launched a $79.1 million fully underwritten placement.
As part of this, the company will issue 15.8 million CHESS Depositary Interests (CDIs). The CDI pricing will be based off a bookbuild process, with an underwritten floor price of $5 each.
The CDI issue under the placement represents 8.9 per cent of the company’s existing issued capital.
Share purchase plan
Following the completion of the placement, Sezzle will offer existing eligible CDI holders the opportunity to participate in the SPP.
The company is aiming to raise $7.2 million in the SPP and is not underwritten, meaning the SPP can raise less than this amount.
CEO Charlie Youakim is pleased to announce the capital raise.
“Our strong 1H20 performance, improving consumer profile, and confidence in reaching an annualised run rate for UMS of US$1 billion (around A$1.4 billion) by the end of 2020 allows us to be uniquely positioned to further expand through a number of near-term growth initiatives,” he said.
“Importantly, this capital raising will give us the ability to invest in these initiatives as well as fortify our balance sheet,” he added.
Sezzle is currently in a trading halt, with last trade for $6.95 per share on July 9.