ASX-listed MONEYME announces $37m capital raise and $16m profit
ASX-listed lender MONEYME has announced the successful launch of a fully underwritten $37 million Conditional Equity Placement. The placement at $0.08 per share sees the issue of approximately 462.5 million new fully paid ordinary shares. The majority of the capital has been committed by existing and long-term shareholders.
MONEYME have stated that proceeds from the Placement will be used to pay down $32 million of the group’s corporate debt facility, including the full repayment of the short-term SocietyOne acquisition. Additional cash of $3 million will be used to support balance sheet growth, with ongoing focus on higher credit quality borrowers, while the remaining $2 million will go towards transaction costs.
Clayton Howes, MONEYME’s Managing Director and CEO, said, “We are pleased to announce that MONEYME has secured $37 million in a fully underwritten institutional equity placement and plans to offer retail investors a $5 million share purchase plan on the same terms.
“The support from new and existing investors despite extremely tight capital markets underpins their confidence in our profitable business model, unique tech-driven advantages, and ability to execute on our strategic vision.
“The proceeds from the equity raising will be used to repay the short-term component of our corporate debt facility that was used to finance the SocietyOne acquisition, and in turn remove the associated concerns that contributed to the significant downward pressure on our share price recently. This repayment will also support our focus on increasing profitability through circa $7m in annualised savings.
“The raise will also further strengthen our balance sheet and unrestricted cash balance and support measured growth and the pursuit of the significant opportunities ahead of us.
“I am very proud of our business and our team’s ability to execute successfully on our strategy to combat the challenging times for the sector. We have proven an ability to grow, adapt, and deliver profit, while also launching industry-disrupting, hard-to-replicate innovations.
“MONEYME delivered NPAT of $9 million in 1H23 and another $7 million across January and February 2023. With over $16 million in NPAT year-to-date, and the significant cost-savings associated with repaying our short-term debt, we project a strong year for the business,” Howes ended.
MONEYME’s profits have increased further, with $7 million NPAT delivered across January and February, following $9 million NPAT in 1H23. The average credit quality of the book also continues to increase, in line with the Group’s focus on higher credit quality borrowers.
Disclosure: At the time of writing, Australian FinTech Pty Ltd is a shareholder of MONEYME Limited.
