Way2VAT Ltd (ASX:W2V) has received firm commitments from new and existing institutional and sophisticated institutional investors to raise A$1.09 million (before costs), as part of a private placement of fully paid ordinary shares at an issue price of $0.051 per share.
Along with the placement, the leader in automated VAT/GST claim and return solutions, will also undertake a share purchase plan (SPP) to existing shareholders with registered addresses in Australia, Israel and New Zealand to raise up to an additional A$500,000 (before costs), providing an opportunity for existing shareholders to further invest on the same terms as the placement.
Highlighting its confidence in the company, board members Amos Simantov and David Buckingham, intend to participate in the SPP, while director Robert Edgley has also committed to subscribe for an additional $10,000 worth of shares under the placement.
Use of funds
The proceeds from the placement and SPP will be used for:
- Growth and ability to compete more effectively in the global market;
- Expansion of Smart Spend Debit MasterCard marketing and distribution in the UK and Europe to generate greater outreach and support higher revenue targets;
- The development of a new website focusing on the Smart Spend Debit MasterCard to effectively increase conversion of signups;
- Increasing staff in the UK office;
- Investment in the development of Way2VAT’s proprietary technology for the adoption of the Smart Spend Debit MasterCard; and
- Working capital and growth.
The recently launched Smart Spend Debit MasterCard, via a partnership with Railsbank, fully automates VAT/GST returns from end to end for the SMB and Enterprise market.
Initial rollout of the Smart Spend Debit MasterCard is aimed at diversified sectors such as transportation, finance, software, manufacturing and telecommunication sectors as they showcase the broad range of capability and different uses the Smart Spend Debit MasterCard has to offer.
Way2VAT CEO and founder Amos Simantov said, “We are very encouraged by the strong level of support shown by both new and existing investors that led us to upsize the placement. I would like to thank our existing shareholders for their continued support. We also welcome the new shareholders to our register.
“The funds raised will support the expansion of our growth initiatives in the timeframe we have forecast. Feedback from customers already using the Smart Spend Debit MasterCard has been positive as it saves both time and effort by controlling spending as well as managing VAT/GST claims all in the one platform.
“The need for Way2VAT’s Smart Spend Debit MasterCard is growing as more enterprises are resuming business travel. With local and foreign travel demand increasing, we see this as a great opportunity to promote the card as it will significantly benefit the way businesses manage their expenses and VAT reclaims.”
Placement details
Way2VAT has successfully secured firm commitments to raise A$1.09 million. The placement price of A$0.051 represents a 18.5% discount to the 5-day volume weighted average price of the shares of A$0.0626 recorded on ASX prior to June 6, 2022 (being the date of the trading halt).
The company will issue 21,176,470 shares under the placement. An additional 196,078 shares under the placement will be made with shareholder approval, as it relates to director participation.
The placement is not underwritten and settlement of shares is expected to occur on Wednesday, June 15, 2022.
Placement shares will rank equally with the company’s existing ordinary shares on issue.
SPP details
Way2VAT is also offering its existing eligible shareholders the opportunity to participate in the SPP to raise a further A$500,000 (before costs), with the ability to accept oversubscriptions or scale back at the W2V board's absolute discretion.
The SPP is not underwritten. Eligible shareholders are any shareholders in Australia, Israel or New Zealand recorded on W2V's share register at 5.00pm (AEST) on Tuesday, June 7, 2022.
Eligible shareholders will have the opportunity to acquire up to A$30,000 in new shares via the SPP at an issue price equal to the placement price.
The new shares issued under the SPP will rank equally with W2V’s existing fully paid ordinary shares from the date of issue