Change Financial (ASX:CCA) raises A$5.7m to accelerate growth via a Placement and fully underwritten Entitlement Offer

Henslow is pleased to have raised A$5.7m, acting as Joint Underwriter and Joint Lead Manager alongside MST Financial Services. The raise was structured as a A$0.75m Placement and A$5.0m, underwritten 1 for 4 Entitlement Offer with proceeds used to accelerate product enhancement of their leading Vertexon PaaS platform, repay A$0.75m of debt and provide additional working capital flexibility.

The capital raise was conducted at an offer price of $0.05 per new share representing a 13.8% discount to the last close price on 29 July 2022.

Change Financial is an ASX-listed fintech providing global payment processing and card (both virtual and physical) issuing services and technologies to banks, financial institutions (credit unions), and fintechs. Over the past 18 months the Change team has worked hard to establish core building blocks – partnerships, compliance, technology and talent – all of which are now in place to deliver on their longer-term growth plan.

The Company delivered FY22 unaudited revenue of US$8.3m and is targeting double digit FY23 revenue growth which is underpinned by a long-standing client base with contracted revenue along with contracted new clients who are anticipated to ‘go live’ throughout FY23. The Company has recently realigned the cost base to streamline operations enabling future growth to be delivered profitably. This will enable them to be monthly EBITDA positive during H2 FY23.

This is the first transaction Henslow has advised on for Change, and we look forward to continuing to build upon our relationship in the future.

The successful transaction provides a further example of Henslow’s ability to partner with exciting growth companies, particularly within the financial services sector.

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