ZIPMONEY RAISES $20.6M TO DRIVE GROWTH

Written on the 6 June 2016

ZIPMONEY RAISES $20.6M TO DRIVE GROWTH

DIGITAL payment platform zipMoney (ASX:ZML) has raised $20.6 million to fund its acquisition of Pocketbook Holdings.

The Sydney-based company raised the capital in a placement to institutional and sophisticated investors of 37.5 million shares at 55c apiece.

The price represents a 14.4 per cent discount to zipMoney's 30-day volume weighted average price and will be issued via two tranches.

The funds will also provide loan book equity capital to secure a new securitisation warehouse facility and support sales and marketing initiatives. The facility is expected to halve the company's weighted average cost of capital to 6 per cent.

ZipMoney managing director and CEO Larry Diamond says the oversubscribed placement demonstrates confidence in the business.

"The placement is a clear vote of confidence in zipMoney's team and business model from the institutional and sophisticated investor community, with leading institutional investors added to our register," Diamond says.

"We look forward to using these funds to continue to accelerate zipMoney's growth and provide a superior experience for our customers."

ZipMoney chairman Philip Crutchfield has agreed to subscribe for about 320,000 shares subject to shareholder approval at an extraordinary general meeting on July 21.

The company has also entered into a non-binding indicative term sheet to acquire Pocketbook for $7.5 million, including $6 million upfront and $1.5 million deferred subject to performance milestones.

The acquisition is expected to provide an opportunity to capture users and gain valuable data and analytics to strengthen zipMoney's lending and credit algorithms.

ZipMoney executive director and COO Peter Gray says the company would be able to deliver complementary financial products within the Pocketbook app.

"The acquisition of Pocketbook is consistent with the company's strategy to become Australia's leading customer-friendly provider in the digitised consumer finance space," Gray says.

"The platform provides an exciting way to leverage Big Data to engage with our user base and deliver added value.

"Pocketbook has exceptional founders, who would be retained post-acquisition and would operate Pocketbook as a stand-alone business unit within the zipMoney group."

 


Latest News

Q & A WITH FACEBOOK GURU ANDY MCKEON AS HE JOINS AUSTRALIAN SOFTWARE COMPANY LIVETILES

HE was creative director at Apple under the legendary Steve Jobs, and is now a senior Facebook executive. In his n...

EAST COAST PROPERTY BOOM BUILDS PROFITS FOR BRICKWORKS

AUSTRALIA'S residential property boom has helped drive a sharp rise in first half earnings for Brickworks (ASX: B...

COLLINS SUPERSIZES IN EUROPE WITH PURCHASE OF 16 KFC RESTAURANTS IN THE NETHERLANDS

COLLINS Foods (ASX:CKF) has stepped up its European expansion through the purchase of 16 KFC restaurants in the Ne...

CSIRO HELPS DEVELOP AUSTRALIAN PHARMA COMPANY FROM $10 MILLION TO $305 MILLION

GOVERNMENT backed scientists have helped multiply the market value of a previously small Australian pharmaceutical...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter