- Splitit (SPT) has closed its share purchase plan (SPP) heavily oversubscribed, with applications totalling almost $90 million
- The company had only been planning to raise $10 million via the SPP, meaning it will have to scale back the applications
- The CEO of Splitit said the company was overwhelmed and delighted with the interest shown by shareholders
- Additionally, Splitit also raised $90 million via a recent placement, to give the company $100 million in additional capital
- Shares in Splitit ended the day trading up 5.48 per cent, at $1.64
Payment solutions provider Splitit (SPT) has been overwhelmed with applications for its share purchase plan (SPP), closing it heavily oversubscribed.
The company received $89.5 million worth of application from eligible shareholders for the SPP - it had only planned to raise $10 million through the offer.
As a result of the high demand, applications will have to be scaled back. Those who held between one and 500 shares at the record date will be issued 100 new shares. While, those who had over 500 shares, will receive 11.9 per cent of their application.
Over 7 million shares will be issued under the SPP later this month, with shares to be added to a quotation from September 25.
Meanwhile, Splitit CEO Brad Paterson has heartily thanked shareholders for their support.
"We are delighted with the overwhelming interest we received from our shareholders wishing to participate in the SPP and thank them for their support," he said.
"The funds will enable us to accelerate our high-growth strategy," Brad added.
Along with the $10 million raised from the oversubscribed SPP, Splitit also raised an additional $90 million via a placement.
If the necessary shareholder approval is given to allow all the shares under the placement to be issued, it will give the company $100 million in capital to play with.
It's further good news for Splitit, who also announced this week that it had decided to team up with fellow fintech company Quickfee (QFE) to launch a new, interest-free product.
Shares in SPT have ended the week trading up 5.48 per cent, at $1.64 each.