Cirralto Ltd (ASX:CRO) directors have demonstrated their confidence in the company’s digital payment and business software strategy with participation in the company's recent placement.
Managing director Adrian Floate acquired 3 million shares for a direct interest on February 26 at 2.5 cents per share, increasing the securities held in that interest to more than 20.06 million.
Floate also holds almost 42.867 million shares in an indirect interest in the company.
Non-executive director Howard Digby purchased 2 million shares in a direct interest, increasing the number of securities in that interest to more than 20.06 million shares with more than 42.86 million shares also held in an indirect interest.
Director participation in the placement was approved by shareholders at the company's AGM on January 28.
Options exercised
Meantime, chairman Peter Richards has also boosted his holding in the company by exercising 4.5 million options between February 22 and 26 at 5.4 cents each
He now holds 14,894,737 shares in a direct interest and another 13,241,790 in an indirect interest.
Strongly supported placement
Cirralto recently received commitments to raise A$18 million through the issue of 200 million fully paid ordinary shares to institutional sophisticated and professional investors at 9 cents per share.
The strategic capital raise follows two other placements; one in August 2020 undertaken to recapitalise the company, resulting in a debt-free balance sheet, and the second, in November 2020, to support the company’s growth with various payment providers.
This most recent round signals a strong vote of confidence and welcome support from institutional shareholders with the company now well-positioned with a strong balance sheet, to drive growth through the adoption of its payments technology across multiple industry segments.
The company intends to use funds for an accelerated commercialisation plan for its products, potential synergistic acquisitions, commercialisation of pilot business payments solutions and for future working capital requirements.