PR Newswire
30 Mar 2023, 15:30 GMT+10
SYDNEY, March 30, 2023 /PRNewswire/ -- MONEYME Limited (ASX:MME) ("MONEYME" or "Group") is pleased to announce the successful launch of a fully underwritten $37m Conditional Equity Placement.
Placement Overview
Proceeds from the Placement will be used to:
Investor participation in fully underwritten Placement
MONEYME has received a significant level of commitment in the Placement from existing investors, including from Somers Limited (a substantial shareholder in Resimac Group Limited and Thorn Group Limited) and Perennial Value.
The planned SPP is to be offered to existing eligible shareholders for the opportunity to apply for up to $30,000 of fully paid shares. The SPP will be subject to shareholder approval under ASX Listing Rule 7.1.
[1] Including accrued interest and fees projected to be due 30 June 2023.
Clayton Howes, MONEYME's Managing Director and CEO said:
"We are pleased to announce that MONEYME has secured $37 million in a fully underwritten institutional equity placement and plans to offer retail investors a $5 million share purchase plan on the same terms.
"The support from new and existing investors despite extremely tight capital markets underpins their confidence in our profitable business model, unique tech-driven advantages, and ability to execute on our strategic vision.
"The proceeds from the equity raising will be used to repay the short-term component of our corporate debt facility that was used to finance the SocietyOne acquisition, and in turn remove the associated concerns that contributed to the significant downward pressure on our share price recently. This repayment will also support our focus on increasing profitability through circa $7m in annualised savings.
"The raise will also further strengthen our balance sheet and unrestricted cash balance and support measured growth and the pursuit of the significant opportunities ahead of us.
"I am very proud of our business and our team's ability to execute successfully on our strategy to combat the challenging times for the sector. We have proven an ability to grow, adapt, and deliver profit, while also launching industry-disrupting, hard-to-replicate innovations.
"MONEYME delivered NPAT of $9 million in 1H23 and another $7 million across January and February 2023. With over $16 million in NPAT year-to-date, and the significant cost-savings associated with repaying our short-term debt, we project a strong year for the business."
Trading Update
MONEYME's profits have increased further, with $7 million NPAT delivered across January and February, following $9 million NPAT in 1H23. The average credit quality of the book also continues to increase, in line with the Group's focus on higher credit quality borrowers.
As part of its measured growth strategy going forward, MONEYME will continue its focus on:
[2] Sales & marketing, product design & development, and general & administrative expenses as a % of gross revenue
Please refer to the Group's Investor Presentation for further material information, including a trading update to 28 February 2023 and the key dates for completion of the Placement and SPP.
Authorised on behalf of the MONEYME Board and the Disclosure Committee by:
Clayton Howes
Managing Director & CEO
About MONEYME
MONEYME is a leading Australian disruptor, using technology to become the #1 challenger to the major banks.
With a focus on innovation, it funds credit approved ambitious people with the advantage of market-leading speed and automated customer experiences. Leveraging AI and advanced cloud- based technology, it offers highly automated credit products across personal, auto and real estate finance.
The Group's core brands MONEYME and SocietyOne reflect digital-first experiences that meet, and exceed, the expectations of 'Generation Now'.
MONEYME Limited is listed on the ASX and the Group includes licensed and regulated credit and financial services providers operating in Australia.
For more information, visit moneyme.com.au or investors.moneyme.com.au
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