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

DARK DAYS AHEAD FOR AUSTRALIAN RETAIL AS REPORT FORECASTS MAJOR INDUSTRY ROUT

ALMOST 1,600 retail businesses are at risk of imminent collapse, including 21 major retailers with turnovers of more ...

GOODMAN TAKES PROFIT AND REVENUE DECLINE BUT LOOKS TO CASH IN ON AMAZON'S ARRIVAL

Commercial and industrial property group Goodman (ASX: GMG) has reported underlying full year net profit has dropped ...

REPORTING SEASON WRAP: MONDAY HIGHLIGHTS

* FORTESCUE Metals (ASX: FMG) reported net profit after tax (NPAT) of $2.64 billion for the year to June 30, up fr...

ARIADNE CUTS DEMANDS FOR FOUR ARDENT BOARD SEATS TO TWO AHEAD OF EGM

REBEL shareholders have reduced their demands on embattled theme parks operator Ardent Leisure (ASX: AAD) to give the...

Related News

DARK DAYS AHEAD FOR AUSTRALIAN RETAIL AS REPORT FORECASTS MAJOR INDUSTRY ROUT

ALMOST 1,600 retail businesses are at risk of imminent collapse, including 21 major retailers with turnovers of more ...

REPORTING SEASON WRAP: MONDAY HIGHLIGHTS

* FORTESCUE Metals (ASX: FMG) reported net profit after tax (NPAT) of $2.64 billion for the year to June 30, up fr...

WESFARMERS BOOKS BUMPER PROFIT BUT SUPERMARKET WAR HITS COLES' BOTTOM LINE

SUPERMARKET giant Coles has posted its biggest slide in earnings since it was acquired by Wesfarmers (ASX: WES) 10 ye...

ANALYSTS PREDICT WHAT AUSSIE LIVING IS LIKELY TO BECOME IN THE NEXT CENTURY

AS THE Australian population continues to grow, analysts are predicting what the country is likely to look like wi...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter