Integrated Payment Technologies (ASX:IP1) raises $1.88 million through entitlement offer

• Integrated Payment Technologies (IP1) has closed its non-renounceable entitlement offer of fully paid ordinary shares after raising $1,883,192
• The company hoped to raise up to $2.32 million, but is still pleased with the entitlement offer’s 81 per cent acceptance rate
• Today, IPT confirmed just under 30,000 shares were subscribed for by an entity tied to Paul Collins, a company director, as part of his underwriting obligations
• During the entitlement offer, InPayTech received applications for approximately 125 million ordinary shares
• The company intends to use the remaining shortfall shares to raise up to $433,1120
• Integrated Payment Technologies shares have risen 25 per cent today, trading for two cents per share

Integrated Payment Technologies (IP1) has closed its non-renounceable entitlement offer of fully paid ordinary shares, after raising $1,883,192.

The company first announced a one-for-two non-renounceable entitlement offer of fully paid ordinary shares on June 16, 2020. At the time, InPayTech hoped to raise up to $2.316 million, at an offer price of 1.5 cents per share.

Today, IPT confirmed just under 30,000 shares were subscribed for by an entity tied to Paul Collins, a company director, as part of his underwriting obligations.

The company closed the entitlement offer 17 days after the announcement, on July 3, 2020. During the entitlement offer, InPayTech received applications from eligible company shareholders for approximately 125,546,123 new ordinary shares.

While the entitlement offer did not raise the total desired amount, the company is still pleased with the 81 per cent acceptance rate. In its announcement, InPayTech expressed its gratitude for the result.

“We wish to thank our shareholders for their strong support for the entitlement offer,” the announcement said.

InPayTech now plans to place the remaining shortfall of 28,874,026 ordinary shares with sophisticated and professional investors. Doing so will raise up to $433,110, allowing the company to reach the original desired amount of $2.316 million.

InPayTech has offered the shortfall to its broker, Sanlam Private Wealth, for the proposed placement. The broker’s capital-raising fee for the proposed placement is 6 per cent of the gross proceeds, plus GST.

The company has also recently conducted a successful institutional placement of 77 million new shares. At 1.5 cents a share, InPayTech raised $1,155,000, a sum which the company referred to as “urgently required funds”.

When it first announced the entitlement offer, the company proposed a number of uses for the funds which would be raised. The list included repairing InPayTech’s balance sheet, by repaying $750,000 in shareholder loans.

The funds may also go towards paying existing creditors and redundancy payments, general working capital, software development, customer acquisition, and business development opportunities. In particular, the company described the need for funds in order to continue trading through the COVID-19 pandemic.

Integrated Payment Technologies shares have risen 25 per cent today, trading for two cents per share at market close.