Trustees Australia Limited (ASX: TAU) shares did not trade on 24 September 2018 and reflected 0.0% intra-day volatility from the last price of $0.27 as the group requested that the Australian Securities Exchange (ASX) place a voluntary suspension over shares in the company pending the release of an announcement by the companyÂ and the securities will not be trading until the prior of the beginning of normal trading on September 25, 2018 or when the announcement is released to the market. The objective of the voluntary suspension is to raise 50 million new equity by the Company through the placement. The funds raised will be used to develop the Cashwerkz platform which has gained a significant acceptance with the institutional investors in term deposits with Australia banks, advisors and dealer groups.
In another release on ASX, the company provided a market update on the progress with Cashwerkz in establishing new customers and increasing the levels of term deposits on the Cashwerkz platform. More than $715 million has moved through the platform and the pipeline of upcoming maturities from transitioning customers is expecting to achieve a target of $900m by end of October 2018. There has been a rapid increase in the momentum for Cashwerkz and positive sales pipeline, capital position and the significant value provided to those who use Cashwerkz. The flexibility has been improved in term deposit returns together with strong security and material efficiency gains.
The customer and FUM pipeline are continuing to grow with previously announced mandates starting to accelerate FUM transferring to the platform. The companyâs strategy to target all investor segment groups is proving to be effective as strong growth has been witnessed across all segments, especially across the 30+ dealer groups already signed up to allow over 2000 advisers to use Cashwerkz. The Cashwerkz platform is rapidly being accepted as a trusted, reliable and secure online platform for cash investing by the larger institutional users that hold the largest volumes of term deposits in Australia. These groups include Custodians, their clients, and major Australian Superannuation Funds which are universally moving to increase investor choice in terms of the range of term deposits offered and improved transparency in investments. Part of this is driven by increased institutional awareness as an outcome of the ongoing Royal Commission into aspects of the financial sector.
The Cashwerkz platform facilitates investors and their advisers to transact in term deposits by streamlining the often-cumbersome process of providing identification and showing comparable term deposit rates and terms offered by participating Authorized Deposit-taking Institutions (ADIs).
Meanwhile, the stock has rising 12.5 per cent in the last five days as on September 17, 2018 with an average trading volume of 9,000. The group had circa $23.23 Mn market capitalization before the capital raising.Â
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