BANXA Holdings Inc (TSX-V:BNXA, OTCQX:BNXAF) has successfully raised nearly $5.5 million through a non-brokered private placement.
In the second tranche, the payments infrastructure company generated gross proceeds of C$3.79 million via unsecured convertible debentures and common share purchase warrants.
The proceeds will be utilized to repay senior secured debt and for general working capital purposes.
Banxa provides payment services and offers Regulatory Technology (RegTech) solutions for cryptocurrency exchanges, Decentralized Finance (DeFi) platforms, and digital asset wallets. Its comprehensive suite of services enables users within the network to seamlessly and securely convert fiat currency into cryptocurrencies and vice versa.
In an unrelated update, Banxa reported progress on the audit by its audit firm, PKF Antares. The audit is moving to the final review stage, with a revised timeline anticipating completion by December 3, 2023.
The delay is attributed to a challenge to Banxa's revenue recognition policy related to agency-based revenue. An independent third party is reviewing the policy, and Banxa is compiling supporting documentation.
Despite the delay, Banxa said it remains committed to completing a thorough audit by November 30, 2023, well within the deadline set by the British Columbia Securities Commission of December 29.
“Although this delay is frustrating, it does not dim in any way Banxa’s tremendous future prospects. Accounting conventions for crypto are complex and still being shaped, a reality faced by publicly traded companies in the industry,” said director and head of Corporate Affairs, Zafer Qureshi.
“Banxa and PKF are committed to completing a thorough audit, which is critical for instilling confidence into all our stakeholders heading into 2024 and beyond.”