Smartpay investors approve $13.5m issue
Investors in terminal provider Smartpay have voted to refinance the company and issue $13.5 million worth of shares in a move that should pave the way for an Australian sharemarket float later this year.
The company also plans to appoint a new chairman, Australian retailer Ivan Hammerschlag, within the next few weeks.
Currently sitting on the board Hammerschlag, and Smartpay chief executive Bradley Gerdis, teamed up to secure the latest injection of equity into the company from institutional and private investors in Australia.
The shares were offered at 11.5 cents each.
The new ASB debt facility was dependent on at least $13m worth of capital being raised.
Current chairman Wayne Johnson said the key benefits of the refinancing and capital raising were to reduce Smartpay's indebtedness and annual interest costs while providing funding for capital expenditure on more eftpos terminals and future growth.
Smartpay had been based on a model where its future cashflows were securitised and sold to third parties in return for lump sum funding to help fuel the company's growth.
ASB has stepped in to offer the $20m facility to buy out those third parties and the control of cashflows will return to Smartpay's balance sheet.
Gerdis also said the company had "pulled the trigger" on its plans to list on the ASX and would secure a float by the end of the year.
The resolution to accept the changes was passed unanimously by those at a special meeting of shareholders including founding director and 13.3 per cent shareholder Murray Henshall.
- © Fairfax NZ News