Mobile payments developer Pushpay secures $18.7 million in private placement

Wednesday 30th September 2015

Pushpay Holdings, the mobile payments app developer, has raised $18.7 million in a private placement of new shares at $4.88 apiece.

A number of existing shareholders, including interests associated with Pushpay directors Bruce Gordon, Graham Shaw, Christopher Huljich, and alternate director Peter Huljich, have subscribed for the new shares and agreed to a 24 month embargo on selling them, the company said in a statement.

The placement included a number of new shareholders such as boutique fund manager Pie Funds Management, whose chief executive Mike Taylor said Pushpay had enormous potential.

“We’re looking forward to seeing what one of the fastest growing SaaS (softwater-as-a-service) companies in the world can achieve in the next 3 to 5 years,” Taylor said.

Pushpay chief executive Chris Heaslip said the funding raised will help further develop its product offering and provide working capital to accelerate growth in international markets, particularly its key market in the US.

The Redmond based company reported in August that it had grown its annualised committed monthly revenue to $10 million and aimed to lift that to $100 million over the next three years.

Pushpay provides mobile commerce tools that help make payments easy between consumers and merchants. It’s targeting the US faith sector for growth, where there are more than 314,000 churches with an average 500 attendees each, along with non-profit organisations and enterprises.

The company raised $13.8 million in an April non-renouncable entitlement offer to shareholders, a portion of which went to repay outstanding debt to cornerstone investor, Christopher & Banks, the investment vehicle for the Huljich family.

Shares in Pushpay, which migrated to the main board from the small cap NZ Alternative Index in June, are currently trading at $6.00. Last Thursday, the mobile payment app developer was asked by NZX regulation to explain a one day surge in its shares of $1, or 17 percent.

The new shares are expected to be issued by Pushpay and quoted on the main board on Oct.5.

BusinessDesk.co.nz

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