Openpay completes Share Purchase Plan to raise over $5.8 million

‘Buy now. Pay smarter.’ company Openpay has announced that the Share Purchase Plan (SPP) announced on 23 May 2022 has closed, with eligible applications received from shareholders totalling A$5.863 million.

As previously advised, Openpay was initially seeking to raise up to A$2 million in funds through the SPP. As announced on 11 August 2022, in response to the strong demand from eligible shareholders Openpay determined to accept oversubscriptions (in excess of the previously stated $2 million cap on the SPP), giving shareholders the greatest opportunity to participate in the SPP and more meaningfully increase their holding in the company.

The SPP offer was conducted in conjunction with and at the same issue price as the company’s successful two-tranche Placement to raise $18.25 million at $0.24 per share from sophisticated and institutional investors (Placement). The SPP and Placement raised in aggregate $24.113 million.

Proceeds from the Placement and SPP will be used to support Openpay’s Australia and New Zealand (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

Commenting on the significant shareholder support for the SPP, Openpay Chairman Patrick Tuttle commented, “We are extremely pleased and humbled by the level of support shown for Openpay by our shareholders. This capital raise provides important funding to support Openpay ANZ’s accelerated pathway to profitability.”