Peppermint Receives Funding From Two Strategic Investors; Stock Up By 16.67%

The Mt Pleasant, Australia-based Peppermint Innovation Limited (ASX:PIL) is engaged in development and commercialization of the Peppermint Platform, a mobile banking, payment, and remittance technology catering to mobile money operators, banks, money transfer and funds remittance companies, retailers/merchants, microfinance institutions and credit card companies in Philippines.

Recently, on March 1st, 2019, the company announced to have received funding support from two strategic investors that have agreed to help deliver its next phase of growth objectives.

Back in October 2018, Peppermint had announced Smidge Digital Unit Trust as the nominee that had agreed to invest $ 1.5 million through a placement of 60 million shares at 2.5 cents per share. Of late, Smidge has further nominated PEGG Capital Limited, to fill the placement by March 31st, 2019. PEGG Capital is a Maltese-based investment group seeking undervalued opportunities in Australia, Asia and other emerging markets. Also, it has agreed to provide continued financial assistance to Peppermint to expedite the adoption of its financial technology platform and business model roll out.

Besides, Peppermint had also raised $ 250,000 via a convertible note with Caason Group, a high-end investment group headquartered in Melbourne, in December 2018. Under the terms, the convertible note is to be exercised at 2.5 cents per share within 12 months. Driven by Peppermint’s vision to ensure financial inclusion and social good to the unbanked and underbanked in the Philippines, Caason Group has reportedly increased this convertible note facility, secured against Peppermint’s legacy Zambian copper asset, to $ 1.5 million to contribute to the current funding requirement.

Meanwhile, the company has released its report for the half-year ended December 31st, 2019, posting revenues of $ 223,265, down on $ 676,947 recorded in the previous corresponding period (half year ended December 2017). The total comprehensive loss for the period stood at ~ $ 1.09 million, up on $ 796,888 recorded in the corresponding prior period.

At the end of the concerned period, the net cash and cash equivalents stood at $ 112,621. There were net cash burns of $ 957,976 caused by operating activities mainly resulting from cash receipts of $ 202,043 from customers overshadowed by payments to suppliers and employees amounting to $ 1.16 million. Besides, the financing activities undertaken during the half-year led to cash inflows including net proceeds from the issue of shares totalling $ 613,804 and proceeds from loans received valued at $ 215,000, both adding up to $ 828,804. There were no investing activities as reported.

In early February, Peppermint collaborated with BancNet to provide its mobile banking technology and services which facilitate electronic fund transfers (EFT’s) in real time to the outsourcing member banks of BancNet, which is the largest inter-bank network of local and offshore banks.

Peppermint is listed on the ASX with a market cap of AUD 11.85 million and ~ 987.58 million outstanding shares. At the time of trading on Friday, March 1st, 2019 (3:05 PM AEST), the PIL stock price was trending at AUD 0.014, zoomed up by 16.667%, indicating an intra-day gain of AUD 0.002.

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