Integrated Payment Technologies Limited (ASX: IP1) today announced the completion of A$0.770 million institutional entitlement offer through the issue of approximately 77 million new shares at A$0.01 per share.
The capital raising relates to the entitlement offer launched by the company on 10 April 2019 to raise up to $1.544 million, comprising of $0.774 million in the retail component and $0.770 million in the institutional component.
Today, the fintech player, InPayTech, announced that there has been successful completion of institutional component of the offer with 100% of share offered been taken-up. The offer price of $0.01 per share reflects a 41.2% discount to the closing price of $0.017 per IP1 share as at 9 April 2019.
The company intends to utilise the net proceeds of the entitlement offer to strengthen its balance sheet, support in attaining and maintaining industry accreditations and for general working capital purposes. InPayTech has planned to further use the funds for continued development of its ClickSuper, STP and PayVu solutions.
The report read that retail component of the offer will open on 17 April 2019 under which eligible shareholders registered as on the record date of 12 April 2019 would be eligible to take up their full entitlement and also apply for additional shares in excess of their entitlement. The Retail Entitlement Offer seeks to raise a further A$0.774 million through a 1 for 1 non-renounceable entitlement offer of circa 77.4 million shares at an offer price of A$0.01 per share. However, the allocation of additional shares and any scale back will be in the Board’s absolute discretion.
It has clearly been stated that only the shareholders with a registered address of New Zealand, Australia or Singapore would be entitled to participate in the Retail Entitlement Offer.
As per the company’s information, any shortfall from the Entitlement Offer is underwritten by the Directors of InPayTech being Don Sharp, Paul Collins and Robin Beauchamp, or related entities, along with InPayTech’s largest shareholder Colin Scully up to total $320,000 in underwriting.
InPayTech also informed that certain institutional and sophisticated investors would be invited by it to participate in any shortfall remaining after additional shares are allocated to Eligible Retail Shareholders.
Retail Entitlement Offer will reportedly close on 15 May 2019. Further, the new shares issued under the Institutional Entitlement Offer are expected to be issued on Thursday, 18 April 2019 to commence trading on the Australian Securities Exchange (ASX) on the same day.
IP1 stock remains at the trading halt, originally announced on 10 April 2019. The stock last traded at $0.017 with a market capitalisation of $2.63 million.
Over the past 12 months, the stock has witnessed a negative price change of 52.78% including the plunge of 15.00% in the past three months.
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