Sharechat Logo

Smartpay raises A$7.5M selling convertible notes to fuel Australian expansion

Wednesday 11th July 2018

Text too small?

Smartpay Holdings raised A$7.5 million selling sophisticated and professional investors convertible notes, which the listed payment terminal supplier will use to fuel expansion plans across the Tasman. 

The Auckland-based company issued 15 notes paying 8 percent annual interest with a term of 27 months at A$500,000 apiece, with the option to convert within the term at a price of 25 Australian cents, it said in a statement. The offer was led by Anacacia Capital's Wattle Fund and was fully subscribed, Smartpay said. The dual-listed shares fell 5 percent to 17.1 cents on the NZX after a trading halt was lifted. That values the company at $29.7 million. 

"The proceeds of the raise will primarily be used to accelerate growth in Australia, predominantly in the areas of increased marketing and sales spend, terminal stock and associated costs," managing director Bradley Gerdis said. "This injection of growth capital is the final piece to activate the execution of our Australian expansion strategy." 

Smartpay increased annual profit 15 percent to $2.5 million in the March 2018 year even as revenue fell 3 percent to $20.4 million, of which $3.3 million came from Australia. In March, Smartpay signed a deal with Alibaba's Alipay allowing the 25,000 merchants using its terminals across Australasia to offer the payment method, which is exceedingly popular among Chinese nationals. 

The notes are expected to be issued on July 17, the company said. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Flick customer base drops to 15-month low amid high power prices
Massey University launches a real-time GDP tracker
NZ guest nights hit a new record in October
NZ service sector activity dips in November but still expanding
Christmas shopping starts to take off
Could Australian banks float their NZ subsidiaries?
Ngāi Tahu backs out of Agria deal, takes direct stake in Wrightson
Mercury to sell meter business for $270 mln
December 17th Morning Report
Expect a soggy GDP reading for the September quarter

IRG See IRG research reports