- Sezzle (SZL) has raised $7.2 million via a securities purchase plan (SPP) which was heavily oversubscribed
- The fintech company closed the SPP with almost $78 million in applications from over 4000 eligible shareholders
- It'll scale back those applications on a pro-rata basis, with funds to be returned later this month
- The company also recently closed a placement, walking away with over $79 million in additional equity
- Sezzle's CEO said the company is now well funded for future growth
- Shares in the company are trading for $7.50, up 4.9 per cent
Buy now, pay later service Sezzle (SZL) has announced its raised $7.2 million via a securities purchase plan (SPP) which was heavily oversubscribed.
The fintech company announced the capital raise last month, with the SPP closing with $78.2 million worth of applications from 4395 eligible shareholders.
As a result, Sezzle has announced it will scale back the applications on a pro-rata basis, so applicants will receive an allotment of 7.1 per cent of their CHESS depositary interests (CDI) holdings at the record date.
Around 1.3 million CDI's will be issued on August 11 as a result of the SPP, with refunds to be processed by Sezzle on August 12.
Along with the $7.2 million raised via the SPP, an additional $79.1 million was raised by the company through a placement.
Sezzle CEO, Charlie Youakim, said as a result of these equity raises the company is now well funded for future growth.
"On behalf of the board, I would like to thank the company’s CDI holders for their strong support through the SPP in raising the target of $7.2 million following the successful completion of the recent placement which raised $79.1 million," he said.
"The company is now well capitalised to accelerate its growth strategy as announced on July 10, 2020," he added.
Shares in Sezzle are trading for $7.50 per share, up 4.9 per cent at 11.47 am AEST.