Change Financial (ASX:CCA) raises A$6.9m to accelerate growth via sole Placement to successful fintech entrepreneur Michael H. Giles
Henslow is pleased to have acted as Corporate Advisor to Change Financial (ASX:CCA) on a A$6.9m sole placement to US-based strategic fintech investor Michael Giles. Following completion of the placement, Mr Giles will hold a 19.99% shareholding in Change.
The placement will result in the issue of approximately 114.3 million new shares and was conducted at an offer price of $0.06 per new share representing a 17.8% premium to the 10-day VWAP and 17.6% premium to the last close price on 15 February 2023.
Funds raised will be used to repay all outstanding debt of approximately A$0.87m and provide working capital flexibility to pursue larger organic and in-organic growth opportunities.
Change is now well positioned to accelerate growth in the US market by leveraging Mr Giles expertise and networks along with the recently signed agreement with Mastercard.
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.
This is the second 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.