- IT service management company Smartpay (SMP) has raised $13 million and will use the money to strengthen its balance sheet
- The money raised will also be used to capitalise on growth in both Australia and New Zealand
- More than 30 million new fully-paid shares will be issued to institutional, professional and sophisticated investors at a price of 42 cents each
- As well as the placement, Smartpay intends to complete a share purchase plan and more information regarding that will be released next week
- Company shares are down 10.7 per cent at market close and are trading for 46.5 cents each
IT service management company Smartpay (SMP) has raised $13 million and will use the money to strengthen its balance sheet.
Approximately 30,952,381 new fully-paid shares were issued to institutional, professional and sophisticated investors at a price of 42 cents each.
The shares are expected to settle on May 27 and then be allocated on May 28.
As well as the placement, Smartpay intends to complete a share purchase plan and while there is limited information at this point, a further announcement will be made next week.
One thing that is known is that shares will be priced the same as the placement and no brokerage fees will incur.
Smartpay will use the money raised from both the placement and share purchase plan to capitalise on growth in both Australia and New Zealand.
Funds will also be used to strengthen its balance sheet through debt reduction.
“We are pleased by the exceptionally strong support received from both existing shareholders and new investors with the placement being significantly oversubscribed,” Managing Director Bradley Gerdis commented.
“After having proved up the Australian growth opportunity, as evidenced in our strong revenue growth figures recently released to the market, we are now readying the business to resume and accelerate our Australian growth and to pursue opportunities in the NZ market as we come through the COVID period,” he added.
Smartpay has ended the day 10.7 per cent in the green with shares trading for 46.5 cents each in a $72.97 million market cap.