Openpay completes $18.25m Placement and announces $2m Share Purchase Plan

Openpay completes $18.25m Placement and announces $2m Share Purchase Plan

Openpay have completed a $18.25 million two-tranche Placement to accelerate its pathway to profitability in the ANZ business.
Commenting on the Placement, ANZ CEO, Dion Appel said, “Openpay ANZ is accelerating its pathway to profitability through sustainable growth, market-leading margins and business simplification. Australia is currently the engine room of the company and we remain focused on delivering this plan. We appreciate the strong and continued support shown by existing shareholders, and new investors for the Placement and are pleased to welcome eligible shareholders to participate in the SPP on the same terms as the Placement to further accelerate our strategy.”

Proceeds from the capital raise will be used to support Openpay’s ANZ strategy, including:

  • Acquisition of new merchants at scale in ANZ
  • Acquisition of new customers at scale and increasing customer retention in ANZ
  • Platform and technology enhancements
  • Contribution to rapidly growing receivables book in ANZ
  • Working capital in a rapid growth business, and facility repayment

Share Purchase Plan (SPP) Details

Openpay intends to offer a non-underwritten SPP to existing eligible shareholders to raise approximately $2.0 million. The issue of New Shares under the SPP is subject to shareholder approval, proposed to be sought at the EGM in July 2022.

The SPP allows eligible shareholders, being those shareholders that are residents of Australia or New Zealand that held Openpay shares at 7:00pm on Friday, 20 May 2022 (Record Date), to subscribe for up to $30,000 worth of New Shares without incurring any brokerage or transaction costs.

New Shares will be offered under the SPP at $0.24 cents per share, being the same issue price as the Placement.

As the SPP is not underwritten, the SPP may raise more or less than this amount.