- Cirralto Limited intends to conduct a pro-rata non-renounceable entitlement issue of options based on one Option for every eligible four shares held.
- Each Option can be exercised for one fully paid ordinary share at $0.025 per Option before the expiry date of 28 July 2023.
- The purpose of the Offer is to recognise the support and loyalty the Company has received from its Shareholders to date.
- Cirralto’s directors have confirmed that they plan to participate in the Offer to the extent of their full entitle.
Australian digital payments and software solutions company, Cirralto Limited (ASX: CRO) is recognising the support and loyalty the Company has received from its Shareholders to date.
In a significant update, Cirralto announced that it plans to conduct a pro-rata non-renounceable entitlement issue of options to eligible shareholders on the basis of one (1) option for every eligible four (4) shares held.
Significantly, CRO witnessed a remarkable increase in its share price, which rose by 680% in the past six months. Meanwhile, there was also sharp growth in demand for Cirralto’s Digital Payment services, with over $1.7 million being currently processed by customers via its Spenda platform.
The Company earns an average merchant fee of 1.45% of the total value of transactions processed. The recent stock momentum and a substantial amount of transaction occurring is a validation that the Company’s strategic endeavours are paying off well.
Meanwhile, the entitlement issue received firm support from the Company’s directors, who have confirmed that they intend on participating in the Offer to the extent of their full entitle.
With this backdrop, let us explore the details of the entitle offer and the Company’s robust product pipeline, backing its progress.
Details of the Entitlement Offer
The Offer includes issuing up to approximately 395,935,727 Options at an issue price of $0.001 per Option for raising up to $395,935 (before costs of the Offer) tentatively on 2 October 2020. Cost to be incurred for the issue comes up to $28,751. This issue is not underwritten.
The shareholders can exercise each Option at an exercise price of $0.025, on or before the expiry date of 28 July 2023. The company shall receive a maximum of $9,898,393 in proceeds if all options are duly exercised.
Cirralto plans to apply for the Options to be listed on ASX at an issue price of $0.001 each. The application of the options would be subject to meeting the minimum ASX quotation requirements.
The Options will be issued to all the Company’s shareholders whose registered address is in Australia or New Zealand and are named on the Company’s register of members at 5.00 pm (AEST) on Friday 11 September 2020
Cirralto indicated that the shares issued upon the future exercise of the Options would rank equally in all respect with all fully paid ordinary shares currently.
The offer documents will be sent on 16 September 2020 to security holders entitled to participate in the pro-rata issue. The closing date for the Offer is 25 September 2020.
Use of Proceeds
The company shall use the proceeds raised through option issue for
Source: ASX announcement dated 7 September 2020
A Glimpse at Cirralto’s Products Driving the Momentum
Cirralto’s software and payment systems have been enabling businesses to transact seamlessly and efficiently. The Company’s licensed product suite, which it plans to acquire under the acquisition of Appstablishment Software Group Pty Ltd consists of business productivity software solutions and innovative B2B dynamic payment products.
The Spenda platform encompasses B2B digital payments product, SpendaCollect, B2C payments product, SpendaPay and the SpendaPOS business management platform.
SpendaCollect- The collaborative payment system connects buyers and sellers, allowing the merchants to balance their ledgers and enabling the customers to make accurate and reconciled payments through their preferred payment method. Cirralto is primarily focused on SpendaCollect’s applications in the B2C market due to the revenue acceleration it delivers with relatively few merchants.
For Detailed Discussion: Cirralto Update: SpendaCollect market fit
SpendaPay- A B2C retail payment solution which is seamless and flexible for both retailers and their customers. It allows businesses to accept more payment options faster.
SpendaPOS- The platform is an elite Point of Sale (POS) system, which enables retail businesses to take payments quickly and easily with complete and easy access to past and present transaction data. SpendaPOS can seamlessly integrate with small business cloud accounting software.
Notably, on 8 September 2020, CRO stock is trading at $0.041, up by 2.5% intraday (AEST:02:18pm). The stock has generated a return of 207.69% in the past one month.
[All currency is in AUD unless stated otherwise]