Smartpay (ASX:SMP) raises $13M to strengthen balance sheet

IT service management company Smartpay has raised $13 million and will use the money to strengthen its balance sheet.

Approximately 30,952,381 new fully-paid shares were issued to institutional, professional and sophisticated investors at a price of 42 cents each.

The shares are expected to settle on May 27 and then be allocated on May 28.

As well as the placement, Smartpay intends to complete a share purchase plan and while there is limited information at this point, a further announcement will be made next week.

One thing that is known is that shares will be priced the same as the placement and no brokerage fees will incur.

Smartpay will use the money raised from both the placement and share purchase plan to capitalise on growth in both Australia and New Zealand.

Funds will also be used to strengthen its balance sheet through debt reduction.

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Source: Smartpay (ASX:SMP) raises $13M to strengthen balance sheet – The Market Herald