ASX-listed Credit Clear raises $8.5m from new and institutional shareholders

ASX-listed Credit Clear raises $8.5m from new and institutional shareholders

Australian provider of technology solutions to the debt collections industry Credit Clear have announced that it has raised approximately $8.5 million from new and existing institutional shareholders via a Placement. The Placement was conducted at an Offer Price of $0.23 per share, a 4.2% discount to the last close price.

The proceeds of the Placement will be used to:

• Fund initial onboarding and integration costs of recently secured marquee clients and prospective clients;
• Fund specific data and security compliance requirements for new marquee clients;
• Fund Business Processing Outsourcing opportunities with prospective clients;
• Invest in sales team to maximise pipeline client acquisitions and SaaS sales;
• Fund channel sales acceleration; and
• Transaction costs.

In the past six months Credit Clear has been successful in winning several marquee clients across each of its industry sector verticals (Insurance, Commercial, Consumer and Government). The onboarding and integration of these marquee clients is typically longer and more resource intensive than smaller clients and involves adherence to specific data and security compliance requirements. Credit Clear’s sales pipeline includes several additional marquee clients.

The company is progressing Business Process Outsourcing (BPO) opportunities, where initial set up and resourcing costs are incurred upfront.

Funds will also be invested in sales resources, where the Board has decided that given the company’s recent new business success and high win rate, it should accelerate sales activities, particularly in selling the high-margin SaaS solution.

Credit Clear CEO Andrew Smith said, “Credit Clear, with $5m in the bank at the end of March 2023 and a trend towards cash flow positivity over the past several quarters, is in a strong position. The Board’s decision to raise capital now is a result of the tremendous success the business has achieved in winning new clients, particularly large marquee clients, and the associated resources required to onboard and service these clients.

“Additionally, it is the Board’s view that new client success could be accelerated further with additional funding, with a particular focus on selling Credit Clear’s high-margin SaaS solution.”