- Payment solutions company QuickFee (QFE) has completed a $7.5 million placement to fund ongoing growth
- QuickFee offers cash flow options to accounting and law firms through its payment portal
- Since the outbreak of COVID-19, the company achieved record lending in both the U.S. and Australia which grew by 61 and 19 per cent respectively
- Office closures and remote working has led professional firms to switch from cheques to online payments
- QuickFee’s shares have gone up 17.4 per cent and are trading for 27 cents each
Payment solutions company QuickFee (QFE) has completed a $7.5 million share placement to sophisticated and professional investors.
QuickFee has raised new capital to fund the ongoing growth of its loan book and technology initiatives.
This follows record lending in the March quarter which grew by 61 per cent in the U.S. to a record US$3.6 million and 19 per cent to A$11.6 million in Australia.
Late last month, the company announced another win, which involved its U.S. loan book exceeding the US$6 million milestone.
“The progress that QuickFee has achieved, particularly in the US over the past two months, has been extremely encouraging, and the Placement will enable us to capitalise on further growth opportunities,” CEO Bruce Coombes said.
QuickFee essentially offers cash flow financing options to accounting and law firms.
Since the COVID-19 outbreak, the company has experienced unprecedented growth as office closures led to professional services firms switch from cheques to electronic payments through QuickFee’s payment portal.
“Since February this year, we have seen transaction volumes more than double, and we now have more than 25 per cent of the top 400 US CPA firms signed onto QuickFee’s platform,” Bruce added.
The annualised transaction volume run rate now sits at US$546 million on the back of US$45.5 million processed in April. This compares with US$30.1 million processed in March and US$10.7 million processed on average for each month in the 2019 financial year.
The placement received strong support by new and existing investors as well as the directors who are each subscribing for one million shares, subject to shareholder approval.
The placement comprises an offer of 35,714,286 fully paid ordinary shares in QuickFee at an issue price of 21 cents each. The issue price represents a discount of 8.7 per cent to the last close price, and 10.8 per cent to the 15-day VWAP prior to the trading halt on May 5.
Specifically, $6 million will fund loan book growth, $1.1 million will go towards technology development, and $0.4 million will cover transaction costs.
QuickFee’s shares have gone up 17.4 per cent and are trading for 27 cents each at 1:02 pm AEST.