Harmoney raises $8.8 mln in preference share issue, halves threshold to go public

Wednesday 3rd February 2016

Harmoney Corp raised almost $8.8 million in a preference share issue after rejigging features of its constitution, including halving the level of new money it has to raise before going public.

The Auckland-based peer-to-peer lender sold about $4.5 million of Series B shares at almost 51 cents apiece to Stone Ridge Ventures, giving the West Australian investor 4.9 percent of Harmoney and $4.3 million to UK peer-to-peer lender P2P Global Investments, which has lifted its stake to about 9.1 percent, according to Companies Office filings. The Series B shares are a new addition to Harmoney's recently amended constitution, which provides for a preference dividend at a yield of 8 percent and top ranking in the event of a wind down.

The Series B shares also distinguish an investor as a major shareholder if they subscribe to at least $4 million, meaning the board must offer them the chance to subscribe to new share issues to avoid dilution. Other major shareholders include Trade Me with 14 percent and founder and co-chief executive Neil Roberts, who owns 43 percent.

Harmoney's board also cut the size of a qualifying initial public offering event to a minimum $50 million from $100 million in the previous constitution.

The new constitution and share issue were done while Harmoney seeks a new chairman after Rob Campbell resigned in December, ending a 17-month stint on the peer-to-peer lending platform's board. Campbell's departure came three days after Roberts returned to the board following a four-month hiatus from a governance role.

BusinessDesk.co.nz

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