Smartpay to raise further $4.3 million in share placement
Merchant services provider Smartpay is raising $4.3 million via a placement of shares in two tranches and will then move to reduce the number of shares on issue.
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Merchant services provider Smartpay is raising $4.3 million via a placement of shares in two tranches and will then move to reduce the number of shares on issue.
The placement, at 2c a share, is being made to a number of private individuals and investment companies. It will increase working capital and support the balance sheet.
Managing Director Ian Bailey said that the company has either in trust or contractually committed the entire $4.3 million and did not expect to have to raise any further working capital in the near future.
To remain within NZX rules, the capital will be issued in two tranches with an initial $1.1m of shares being issued immediately. The balance of the shares will be issued after the annual meeting on October 4, subject to shareholder approvals being obtained.
After the annual meeting the company will carry out a share consolidation to reduce the number of shares on issue from approximately one billion to closer to 100 million.
Smartpay bought the payments business of ProvencoCadmus from receivers last year.
The company said the capital markets in New Zealand have been very difficult in the last year with low investment in small companies listed on the sharemarket.
NZPA
Wed, 08 Sep 2010
Wed, 08 Sep 2010
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Smartpay to raise further $4.3 million in share placement
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