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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.


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