Eight Capital Partners PLC (AQSE:ECP), a fintech group that operates via subsidiaries Innovative Finance and Epsion Capital, said it plans to raise as much as £10mln in a share placing as part of its previously announced transformational growth strategy.
It said it seeks to raise the new funds in stages, resulting in an issue of up to 50bn new shares in total at a price of 0.02 pence per share.
The fundraising is the next step in the implementation of the fintech group’s strategy, providing the company with an initial tranche of acquisition funding as well as headroom in its capital structure to continue the debt-to-equity conversions committed to by its major shareholder, it said.
IWEP Ltd, the company's major shareholder, remains committed to converting up to €33mln of existing debt into new equity, it added.
“The completion of the fundraise, and associated debt conversions, are key milestones towards the company's goals of becoming a significant fintech operating group and increasing its market capitalisation to £50mln and beyond,” the group said in a statement.
The company reported its maiden set of interim results in September and set out its key long-term objectives.
READ: Eight Capital Partners says transformation of balance sheet will allow faster growth