- Splitit Payments (SPT) has announced it will raise a $16 million via a share placement
- Institutional, sophisticated and professional investors have committed to subscribe for over 39 million shares at 41 cents each
- The funds will help to deliver Splitit’s growth strategy by investing in market and tech resources and supporting existing merchants
- It seems the buy now, pay later company is already on track, as it recently announced a 165 per cent increase in its merchant sales volume
- Splitit is down 5.77 per cent on the market and shares are trading for 49 cents each
Payment solutions provider Splitit Payments (SPT) will raise $16 million through a share placement to institutional, sophisticated and professional investors.
Splitit has received firm commitments to subscribe for 39,024,391 shares at an issue price of 41 cents per share.
“It’s great to have strong support from such a good cross-section of new and existing Australian and International investors, who recognise the opportunity we have right now to capitalise on the growing demand for our unique offering,” CEO and Managing Director Brad Paterson said.
The funds will go towards allowing Splitit to advance its growth strategy by investing in go-to-market and technology resources, support existing merchant credit facilities and for general working capital.
It seems the buy now, pay later company is on the right track to delivering on its promises, as it detailed a number of wins in its recent quarterly report.
For April, Splitit reported a 165 per cent increase in merchant sales volume (MSV) on the prior corresponding period (PCP). There was also a 152 per cent increase in MSV since March 2020.
Revenue also grew during the quarter by 104 per cent on the PCP to US$657,000 — up 51 per cent on the previous quarter.
“Given the uncertain environment, bolstering the balance sheet now was imperative to ensure we are well set to deliver growth for our shareholders over the medium to long term,” Brad added.
The placement is expected to settle on May 6.
Splitit is down 5.77 per cent on the market and shares are trading for 49 cents each at 11:37 am AEST.