Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


SmartPay raises $2.3 mln in discounted share offer

SmartPay raises $2.3 mln in discounted share offer

By Paul McBeth

Dec. 21 (BusinessDesk) – SmartPay Ltd., the EFTPOS services company that bought distressed Provenco-Cadmus assets, raised $2.3 million through a series of discounted private placements, and has secured a $2 million funding line.

The company boosted the number of shares on issue by about a tenth, selling some 113.8 million shares off-market at 2 cents apiece. That’s a 30% discount to the 2.6 price the stock is currently trading at. At the same time, SmartPay secured a new funding line at a cheaper, 10% per annum rate, which it’s drawn down by $1 million. The facility carries an option to convert any debt to equity on or before Feb. 15 2013.

Chairman Wayne Jonson said the placement and debt raising was needed to meet upcoming repayments due this month and in February next year and to ensure working capital levels are maintained to meet the company’s forecasts.

“New Zealand’s equity markets continue to be difficult for capital raising,” Johnson said in a statement. “This capital raising and having access to over $5 million in new equity and loans is a great endorsement of our business model and is particularly pleasing given the tight funding environment.”

Earlier this month SmartPay said it will seek a listing in Australia to help cement its presence across the Tasman in the coming 12 months. At the same time, chairman John Setton stood down.

The shares were unchanged at 2.6 cents today.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Real Estate: Foreign Buyers Ban Passes Third Reading

The Bill to put in place the Government’s policy of banning overseas buyers of existing homes has passed its third and final reading in the House. More>>


Nine Merger: Fairfax Slashes Value Of NZ Business

Fairfax Media Group more than halved the value of its Kiwi assets, attaching just A$40 million to mastheads that were once the core of a billion dollar investment. More>>

Collecting Scalpers: Commerce Commission To Sue Viagogo

The Commission will claim that Viagogo made false or misleading representations: • that it was an “official” seller, when it was not • that tickets were limited or about to sell out • that consumers were “guaranteed” to receive valid tickets for their event • about the price of tickets... More>>


Price Of Cheese: Fonterra CEO Goes Early After Milk Price Trimmed

Aug. 15 (BusinessDesk) - Fonterra Cooperative Group chief executive Theo Spierings is leaving the role early after the world's biggest dairy exporter lowered its farmgate payout and trimmed its dividend to retain cash. More>>