Change Financial Limited Undertaking A Capital Restructure

  • Dec 12, 2018 AEDT
  • Team Kalkine
Change Financial Limited Undertaking A Capital Restructure

It is a company based in the US as a FinTech which is disrupting the way businesses, people, and financial institutions transact through its range of innovative transactional services. The company has lately reviewed its business. Its focus is on completing the technology build of its enterprise banking platform. Looking for an innovated payments processing solution this platform will be targeting US banks, credit unions, and corporations. The company is looking out to monetize its non-core businesses like ChimpChange for which to explore the sale the company has engaged a US investment bank and Ivy for which to monetize its investment in reviewing several strategies.

The company is now undertaking a capital restructure following the strategic review. To support the build-out of its core enterprise banking offering, it has secured a cornerstone investment from Altor Capital, and an entitlement offer to existing shareholders will support the investment. Harley Dalton and Ben Harrison who are the key principles of Altor Capital are joining the board.

The company has cashless society driving growth with a projected US$50 billion industry in 2019. It has a high barrier to entry with less than 30 Mastercard certified issuers in the USA and operating margins average about 25%. It has a large captive customer base with more than 7,000 FDIC banks in the US. The way people move money and interact with their finances on a day to day basis Change Financial was founded to change that. The Company launched with a consumer bank account offering in the USA in early 2015 working with a Mastercard processing partner and banking partner.

The Company made the strategic decision to build this capability in-house with assistance from its banking partner born out of frustration with the existing processing partner which allowed for a more cost-effective, flexible and technology-centric platform. The Company is focused on finalizing the completion and commercialization of the platform, while there have been significant time delays with the build.

Change Financial Limited (ASX: CCA) under the information technology sector traded at a market price of $0.069 which is at its 52-week low and had a fall of 9.211%. The stock has undergone a performance change of -89.59% over the past 12 months.


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