- Splitit Payments (SPT) has received firm commitments to raise $90 million through a two-tranche share placement
- The company will issue around 69.2 million shares at $1.30 each to institutional, sophisticated and professional investors via the placement
- Additionally, Splitit intends to launch a share purchase plan to raise up to $10 million
- The funds will support additional sales and marketing, as well as investing in product and technology development
- Company shares are trading 13.2 per cent higher at $1.55
Splitit Payments (SPT) has received firm commitments to raise $90 million through a two-tranche share placement.
The payment solutions provider will issue roughly 69.2 million new shares at $1.30 each to institutional, sophisticated and professional investors.
Splitit is also planning a non-underwritten share purchase plan (SPP) to raise an extra $10 million. The SPP will be launched once the placement shares under the first tranche have been issued.
The funds will be used to accelerate Splitit's high-growth strategy by funding additional sales and marketing, as well as further investing in product and technology development.
"We are the only buy now, pay later (BNPL) provider servicing the huge and growing credit card industry and our investors recognise the enormous opportunity to accelerate merchant and customer adoption across our key markets," CEO and Managing Director Brad Paterson said.
The placement will see new high-quality institutions join the company's register. Specifically, Woodson Capital Management will join the company's register as a cornerstone investor. Woodson manages a global consumer and technology investment fund that is based in New York.
Tranche one of the placement will issue roughly 34.6 million shares to raise $45 million. Tranche one placement shares are expected to settle on August 11.
The company aims to issue an additional 34.6 million shares under tranche two to raise another $45 million — subject to shareholder approval.
Tranche one and two placement shares will rank equally with existing ordinary shares from the date of issue and will be issued at the same price.
Under tranche two, some directors and a related party to a director have agreed to subscribe for shares for a total of $1,792,308, however, this too is subject to shareholder approval.
Share purchase plan
In addition, via a share purchase plan, the company aims to raise up to $10 million. Splitit will issue the SPP shares at the same price as the placement and they'll rank equally with existing Splitit shares.
Eligible shareholders can apply for up to $30,000 worth of Splitit shares, but the company has the right to scale back applications at its discretion.
The SPP will open on August 21 and close on September 4.
Company shares are trading 13.2 per cent higher at $1.55 each at 10:34 am AEST.