Spenda Ltd (ASX:SPX) has raised $3.9 million in a private placement, surpassing its initial goal thanks to overwhelming support from new sophisticated and professional investors as well as existing shareholders, the board of directors and management.
The company increased the total amount of the fund-raising from a minimum of $2.5 million to accommodate the robust demand, which underscores the confidence in Spenda's business model and growth prospects.
Money raised will be used to finance first loss capital relating to funds drawn from Spenda's debt warehouse facility as well as for product development and general working capital.
"Strong confidence"
Spenda managing director Adrian Floate said: “It goes without saying that for the company to achieve such strong demand in the current economic climate reflects the strong confidence that both new and existing shareholders have in Spenda and its future trajectory.
“As I’ve noted in previous statements, the company is at an inflection point, having completed the groundwork to deliver a fully integrated payments and lending platform to the market.
“Securing key strategic customers, namely Carpet Court and Capricorn Society, is testament to the company’s technological capabilities, noting that these customers only represent a fraction of the company’s current sales pipeline.
“I would personally like to thank Evolution (Capital Pty Ltd), Red Leaf (Securities) and the other relationship brokers involved in the process for introducing new sophisticated investors to the company and finally, I would also like to thank our existing shareholders, board and management for their unwavering support.”
Summary of placement and broker options.
Internal support
Floate and fellow Spenda directors Peter Richards and Howard Digby will invest $360,000 of the $477,500 committed by the company’s directors and management under the placement.
The placement shares were offered at an issue price of $0.009 each, with one free option for every two ordinary shares subscribed.
These options have an exercise price of $0.0175 each and expire two years from the issue date.