- Cirralto (CRO) has tapped investors for $18 million as it continues to build up its payment services and business money management tech
- The fintech company is placing 200 million shares to institutional and sophisticated investors at 9 cents each — a 6 per cent premium to CRO's 20-day volume-weight average price
- This marks the third capital raise to be taken on by Cirralto since August 2020 as the company restructures its business and builds up its tech platform
- Released in tandem with today's capital raise news, Cirralto has announced the launch of its latest addition to the Spenda platform, MySpenda
- The Spenda platform is designed to optimise and simplify business payment processes
- MySpenda acts as a single portal to help companies navigate between viewing their own payment service needs and their requirements from suppliers
- On top of all this, Cirralto has kicked off second-phase tests for its Fiserv, MasterCard, and Visa deals, to be completed by the start of March
- Shares in Cirralto are up 8.7 per cent this afternoon to trade at 12 cents per share
Cirralto (CRO) has tapped investors for $18 million as it continues to build up its payment services and business money management tech.
The fintech company will place 200 million new shares at 9 cents per share to raise the funds, with the majority of the shares going to institutional investors.
The share price represents a 6 per cent premium on Cirralto's 20-day volume-weight average price of 8.52 cents leading up to the raise but a 21.7 per cent discount to the company's last closing price of 11.5 cents per share.
This marks the third capital raise to be taken on by Cirralto since August 2020; the company raised $2.7 million in a placement in August to recapitalise its business and pay off debts, and Cirralto then raised $2.8 million in late-November to fund growth plans with various payment providers.
Now, Cirralto plans to use the upcoming influx of cash to develop its payment technology platforms.
Company CEO and Managing Director Adrian Floate said after a "transformative" 2020, the company is in a strong position to focus on aggressive growth.
"It is our ambition to utilise this capital to enhance our growth trajectory and allow us to attract the talent and customers to grow our footprint both domestically and internationally, whilst also having sufficient operational runway funding to support us through the next phase of the company's development and maturity," Adrian said.
In tandem with today's capital raise, Cirralto launched the latest addition to its Spenda technology, MySpenda.
Easy money management
Cirralto's Spenda platform is designed to optimise and simplify business payment processes by helping businesses complete the entire quoting and invoicing process through a single platform.
From the Spenda interface, businesses have access to real-time payment services, debt collection software, inventory management, catalogue sharing, transaction tracking, and more.
The new MySpenda interface, which Cirralto plans to launch before the end of March, will act as a single portal that helps a company easily navigate between viewing their own payment service needs and their requirements from different connected suppliers.
Essentially, MySpenda is designed to remove the need for manual data entry and increase business security, with users never needing to provide secure payment details to businesses they trade with.
"What we are doing is unique to the market," Adrian said.
"We are creating a software that focusses on and improves the buyer/seller relationship regardless of where this relationship sits," he said.
"Our software is truly universal in application to anyone who buys or sells goods."
The MySpenda tech can be integrated into other accounting systems like Xero and MYOB.
Finally, Cirralto has kicked off the second phase of live product testing for its recently-signed business payments service provider (BSPS) and business payments aggregator (BPA) deals with the likes of Fiserv, MasterCard, and Visa.
The company started live production testing of payments using these services in early-February, focussing on security, transaction value, general ledger integration and merchant funding speed.
The first round of tests resulted in a major system update to refine the tech and resolve some issues ahead of the commercial launch. The second phase of testing kicked off on February 17 and is slated to end on March 1, with a commercial release date to be confirmed thereafter.
Investors seem impressed with Cirralto's news today, with shares spiking over 13 per cent in early market action.
Since then, the company has retreated lightly, but Cirralto is still trading 8.7 per cent higher at 11:25 am AEDT at 12 cents per share.