Source: Mint Payments
Payments technology solutions provider Mint Payments (ASX: MNW) (Mint or the Company) has successfully completed a placement of new shares to drive its aggressive expansion into South East Asia’s evolving payments landscape.
The placement will be made pursuant to s708 (11) of the Corporations Act 2001, to raise $6.0M. Priced at $0.079 per share, the Placement represents a 3.7% discount to the last traded price of $0.082 per share.
The capital raising will be undertaken in two tranches:
a) Tranche 1 - comprising 50.6M shares, raising $4.0M pursuant to the Company’s existing 15% capital issue limit under ASX Listing Rule 7.1 ; and
b) Tranche 2 - comprising 25.3M shares, raising $2.0M. This includes $1.0M from TAAJ Corporation, an entity associated with Directors, Alex Teoh and Andrew Teoh, and hence a related party to the Company which will require shareholder approval. This is expected to be sought at an upcoming General Meeting.
The placement also includes one attaching option for every 2.5 shares subscribed (“Option”). The Option is exercisable over an 18 month term at an exercise price of $0.079 which will, if exercised, provide Mint with further growth capital of up to $2.4M and enable it to be well positioned to capitalise on new opportunities over the medium term.
Canaccord Genuity (Australia) Limited acted as Lead Manager to the placement.
Use of Funds and Outlook
The funds raised in the placement puts Mint in a strong position, enabling it to grow and
consolidate the momentum it has achieved to date. The funds will be used for:
• Technology, product development and systems integration costs with Financial Institutions and Software-as-a-Service (SaaS) partners in Asia;
• Sales and marketing (pre-sales, business development & marketing) in Australia and Asia;
• Debt repayment; and
• General working capital purposes
Commenting on the placement, Mint CEO Alex Teoh said: "I am pleased by the continued support that we have received from all our major shareholders who participated in the placement as well as the strong demand received from new domestic and international institutional investors whom we are delighted to welcome onto the register."
“We have seen considerable momentum build in the business over the last 18 to 24 months, exemplified by the growth in our key operating metrics from our Australia and New Zealand operations, and this funding will assist us in consolidating that momentum.”
“In Asia, the strengthened balance sheet will allow Mint to drive further incremental revenues via the implementation of a suite of innovative omni-channel solutions to our existing partners, notably NETS, Global Payments and ABSS (MYOB Asia). We will also be able to make further inroads through the partnering and integration with both new financial institutions and strategic SaaS partners, strengthening our partner network and solidifying Mint’s position in South East Asia.”
“Ultimately, the funding will provide Mint the pathway to profitability for the consolidated group and achieve its vision of being the leading payment solutions and technology partner in the Asia Pacific region.”