Immediate Acquisition PLC, a cash-shell rebooted last month out of Immedia Group Plc, has raised £8mln and announced a deal-to-buy fintech firm Fiinu which is expected to have a banking licence from the Bank of England prior to its admission to the London Stock Exchange.
Fiinu has developed a short-term credit product (approved by the Prudential Regulatory Authority and the FCA "subject to capital") called ‘Plugin Overdraft’ which will offer UK customers an overdraft facility decoupled from their current accounts via an app. It is pitched as an alternative to expensive and predatory short-term lending options, such as so-called ‘pay day loans’.
Significantly, according to Fiinu, its overdraft app won’t negatively impact credit scoring systems, meaning its customers will be able to access short-term funds whilst building their credit rating rather than eroding it through other forms of credit.
"Many people assume that everyone has on overdraft - they do not,” said Tim Hipperson, IME non-executive chair.
“This is in the main due to regulatory changes which in effect led to the disappearance of unarranged overdrafts. With its proprietary product, the Plugin Overdraft®, Fiinu will be the first company to be able to unbundle an overdraft facility from a primary current account."
Hipperson added: "As a board, we have looked at and appraised a number of opportunities in the technology and fintech sector and Fiinu stood out when it came to a product in a market with incredibly high barriers to entry and its consumer-focused operating model which improves financial inclusion.”
Immediate Acquisition is now issuing some 40.05mln new shares priced at 20p each, to raise £8.01mln of gross proceeds. The placing was organised by stockbroker SP Angel which facilitated an accelerated bookbuild following the announcement of the deal after Tuesday’s market close.
The transaction is deemed a reverse takeover under AIM rules and as such the London-quoted share is now suspended until the Fiinu deal closes and the new shares are re-admitted.
Fiinu is run by Chris Sweeney, formerly chief executive of Vanquis Bank, who is chief executive of the fintech firm, alongside chief financial officer with Philip Tansey, formerly WH Ireland CFO, and its non-executive chair David Hopton whose CV includes 17 years at the Bank of England and Abbey National / Santander.