- Afterpay (APT) has provided an update on its share purchase plan (SPP) that has been deferred since June this year
- The buy now, pay later leader sought to raise $30 million however this was deferred due to an AUSTRAC notice
- Afterpay had to appoint an auditor to examine its compliance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006
- Now that the audit has been backed, the SPP has been reopened
- Afterpay is up slightly by 0.07 per cent, with shares trading for $29.77
Afterpay (APT) has provided an update on its share purchase plan (SPP) that has been deferred since June this year.
The share purchase plan was announced on June 11 and the buy now, pay later leader would seek to raise $30 million on top of its $317.2 million capital raise.
The SPP would see eligible shareholders able to subscribe for up to $15,000 of new shares to be issued at the lower of $23 each.
However, this was put on the back burner once Afterpay received a notice from AUSTRAC requiring it to appoint an auditor to conduct an external audit to examine its compliance with the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Act 2006.
“The audit will help identify if Afterpay has developed and implemented the systems and controls it needs to ensure it complies with its obligations,” AUSTRAC CEO Nicole Rose said.
The AUSTRAC CEO claimed new financial businesses such as buy now, pay later ones have grown rapidly in recent years and need to comply with the AML/CTF Act.
The next five months saw Afterpay working diligently to engage with AUSTRAC and meet its obligations.
On November 25, the company saw its shares soar after an auditor backed its compliance.
Since then, the share purchase plan has been re-opened and an SPP booklet will be dispatched to eligible shareholders on December 12 and the offer will close on January 17 2020.
Afterpay is up slightly by 0.07 per cent, with shares trading for $29.77 each at 2:24 pm AEDT.