Harmoney raises $8.8 million in preference share issue
Harmoney halves level of new money to be raised before going public
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After rejigging its constitution, Harmoney Corp raised almost $8.8 million in a preference share issue.
The constitution readjustment included halving the level of new money it has to raise before going public.
The Auckland-based peer-to-peer lender sold about $4.5 million of series B shares at almost 51c apiece to Stone Ridge Ventures, giving the West Australian investor 4.9% of Harmoney. It also sold $4.3 million to UK peer-to-peer lender P2P Global Investments, which has lifted its stake to about 9.1%.
The series B shares are a new addition to Harmoney's recently amended constitution, which provides for a preference dividend at a yield of 8% and top ranking in the event of a wind down.
The series B shares also distinguish an investor as a major shareholder if they subscribe to at least $4 million, meaning the board must offer them the chance to subscribe to new share issues to avoid dilution. Other major shareholders include Trade Me with 14% and founder and co-chief executive Neil Roberts, who owns 43%.
Harmoney's board also cut the size of a qualifying initial public offering event to a minimum $50 million from $100 million in the previous constitution.
The new constitution and share issue were done while Harmoney seeks a new chairman after Rob Campbell resigned in December, ending a 17-month stint on the lending platform's board.
Mr Campbell's departure came three days after founder and co-chief executive Neil Roberts returned to the board following a four-month hiatus from a governance role.
(BusinessDesk)
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Paul McBeth
Wed, 03 Feb 2016
Wed, 03 Feb 2016
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
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Harmoney raises $8.8 million in preference share issue
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