Wisr raises $33.5 million to accelerate growth
Wisr Limited (ASX: WZR) announces it has received commitments to raise $33.5 million via a placement of approximately 181 million ordinary shares. The Placement was extremely well supported and allocated to new and existing institutional and sophisticated investors. The Placement saw a number of high quality institutional investors join the Wisr register.
The Placement was managed and arranged by Shaw and Partners as Lead Manager and supported by Blue Ocean Equities.
The issue price for the Placement is 18.5c per share, representing a 15.9% discount to the 5-day volume-weighted average price of the Company’s shares leading up to 13 January 2020. The shares issued pursuant to the Placement will rank equally with existing ordinary shares of the Company.
Wisr will issue the Placement shares in two tranches. Settlement of Tranche 1, being approximately 92 million shares, is expected to occur next week. Tranche 2 of approximately 89 million shares will be issued subject to shareholder approval, which will be sought at a shareholder meeting to be held in March 2020.
In order to allow existing retail shareholders the opportunity to increase their holdings at the same price offered in the Placement, the Board has resolved to offer eligible shareholders the opportunity to participate in the Wisr Share Purchase Plan Offer (SPP Offer). The Company aims to raise an amount of $1.5 million with the SPP Offer but may scale back applications or issue a larger number of shares, in its absolute discretion.
Additional information in relation to the SPP Offer, including the SPP Offer terms and conditions, will be provided in due course.
Mr. John Nantes, Chairman of Wisr said, “We would like to thank our existing shareholders who have participated in the Placement for their ongoing support, as well as welcoming all new shareholders who will join the register following this capital raise. We also want to congratulate Anthony and his incredible team on the phenomenal business results they have delivered which have driven today’s result.”
Mr. Anthony Nantes, CEO of Wisr said, “We are very pleased with the strong support we have received for the capital raise. The result is a clear validation of Wisr’s strategy and vision to provide Australians with a smarter, fairer alternative when it comes to their personal finances, and our approach to redefining what a consumer lending company can be.”
“Wisr will use the proceeds of the Placement to support the scaling of the core lending business, the ongoing development of our ecosystem of category-defining products, continue to attract the best talent from across industries in Australia and strengthen the balance sheet. Through our unique strategy and commitment to a meaningful purpose, we look forward to making a positive and sustained impact as we grow the Company,” concluded Mr. Anthony Nantes.
This announcement effectively lifts the trading halt the Company requested on 14 January 2020. The Company is not aware of any reason why the ASX would not allow trading to recommence immediately.