eServGlobal Limited (ASX: ESV) raised A$33.4 million to fund support the capital increase in HomeSend

October 04, 2018 09:15 AM AEST | By Team Kalkine Media
 eServGlobal Limited (ASX: ESV) raised A$33.4 million to fund support the capital increase in HomeSend

eServGlobal Limited (ASX:ESV) announced the total fundraising of A$33.4 million via placement of 304,000,000 new shares of eServGlobal at an issue price of A$0.11 per share. The placement was done by way of Firm placing, Institution offer and Clawback placing under the retail offer.

The break-down of the fundraising includes A$24.37 million from Firm placing via the issue of 221,559,031 new shares, A$6.90 million Institutional Offer via the issue of 62,716,449 news shares and Clawback Placing of A$2.17 million via the issue of 19,724,520 new shares under the Retail Offer.

But, how the company is going to utilize these funds?

The financial technology provider eServGlobal Limited told that fundraising will be majorly utilized to fund support the eServGlobal’s share of the expected capital raise in the joint venture HomeSend. This means that on the back of expected call for capital raise of A$82.54 million in JV HomeSend, eServGlobal will bring in his share (35.69%) of capital raise underpinned by A$28.6 million proceeds received from placement.

eServGlobal holds 35.69% share in a joint venture of the HomeSend while the partner Mastercard holds the remaining 64.31% share of the JV. HomeSend is a global payment hub which enables cross-border transfer between cards, bank accounts, mobile wallets or cash outlets across the world.

The increased funds of A$82.54 million in HomeSend are reported to be utilized in the development of inhouse foreign exchange capabilities, deepen the HomeSend Network and provide funding of approximately A$54.48 million to support significant growth in volume in 2019. [optin-monster-shortcode id="wxhmli4jjedneglg1trq"]

After supporting HomeSend capital increase, the part of fundraising amounting to A$3.34 million would be utilized in the strengthening of the eServGlobal’s core business for sale. It is because the company is into ongoing discussion with some interested parties in respect of sale of its core business. eServGlobal Limited told that the update on the sale transaction is expected to be out in the market within 2 months.

The company is anticipating a return to growth in its core business this year. It was reported that cost base has reduced by A$9.91 million as compared to FY17, thereby delivering an annual breakeven run rate of A$18.17 million - $18.99 million.

The share price of eServGlobal Limited has plunged by 4.348% to $0.110 on 4 October 2018. The stock has seen a performance change of -20.50% over the past one year.

Dividend Stocks To Buy

The Income available from dividends remains attractive for many investors.

We take a look at the best yields on the market and assess what they say about a company’s prospect.

One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”

ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.

Click here to get your free report.


Disclaimer

The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.

AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.