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.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Gita Hits NZ: 'It Was Literally Like A Wall Of Water'

"We were looking at the river at 80 cubic metres at about 4pm thinking it was amazing that we'd dodged the bullet ... an hour and a half later it was 600 cubic metres, and it just kept going up to 900 from there." More>>

ALSO:

Closing Or Selling Regionals: Fairfax Starts NZ Endgame

Fairfax Media Group will close or sell 35 percent of its New Zealand print titles as the Australian group pursues a digital strategy for the kiwi unit, now rebranded Stuff. More>>

Fletcher Building: Norris Steps Down As Chair After New $486M Loss Provision

Ralph Norris will step down as chairman of Fletcher Building after the company took a further $486 million provision for project losses at its Building + Interiors unit and said 14 of the unit's 73 projects, worth $2.3 billion, are loss-making or 'on watch'. More>>

ALSO:

WWF: Concerns With Suggestion To “Scrap” Fishing Monitoring

“Our Pacific neighbours, like Fiji and the Solomon Islands, are making this work with far less economic resources than New Zealand. There’s no reason the government can’t get this done by October.” More>>

ALSO: