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- Zip Co (Z1P) aims to raise almost $200 million to help it strengthen its balance sheet and accelerate growth
- The company has already raised $148.7 million through a placement and aims to raise a further $50 million through a share purchase plan (SPP)
- Under the SPP, eligible shareholders will be able to apply for up to $30,000 of new shares with a closing date scheduled for April 1
- The company said the funds will assist with growth by providing it with more capital runway to execute on the potential synergies from its proposed acquisition of Sezzle
- Shares have dropped 7.69 per cent today to $2.04 each
Zip Co (Z1P) aims to raise almost $200 million to help it strengthen its balance sheet and accelerate growth.
The company has already $148.7 million through a placement and aims to raise a further $50 million through a share purchase plan (SPP).
The company said the funds will assist with growth by providing it with more capital runway to execute on the potential synergies from its proposed acquisition of Sezzle.
Under the placement, Z1P will issue 78.3 million new shares at a price of $1.90 each, representing a 14 per cent discount to the last closing price.
The placement is not subject to shareholder approval and will be listed under the company’s placement capacity.
The new shares will be issued Thursday and will begin trading on Friday.
Under the SPP, eligible shareholders will be able to apply for up to $30,000 of new shares with a closing date scheduled for April 1.
These shares will be offered at the lower price of either $1.90 each or a 2 per cent discount to the five-day volume-weighted average price up to the closing date of the SPP.
All shares under the placement and the SPP will rank equally to existing shares.
Shares dropped 7.69 per cent today to $2.04 each at 11:30 am AEDT.
