Smartpay to raise $4.3m with shares

SmartPay's Ian Bailey. Photo / Supplied

Payment services provider Smartpay is raising $4.3 million via a placement of shares in two tranches and will then move to reduce the number of shares on issue.

The placement, at 2c per share, is being made to a number of private individuals and investment companies. It will increase working capital and support the balance sheet.

Managing director Ian Bailey said the company had either in trust or contractually committed the entire $4.3 million and did not expect to have to raise any further working capital in the near future.

To remain within NZX rules, the capital will be issued in two tranches with an initial $1.1 million of shares being issued immediately. The balance of the shares will be issued after the annual meeting on October 4, subject to shareholder approvals being obtained.

After the annual meeting the company will carry out a share consolidation to reduce the number of shares on issue from about one billion to closer to 100 million.

Smartpay purchased the payments business of ProvencoCadmus from receivers last year.

- NZPA