Australia-based digital lender MONEYME has launched a fully underwritten USD 37 million Conditional Equity Placement. The placement at USD 0.

08 per share sees the issue of approximately 462. 5 million new fully paid ordinary shares. The majority of the capital has been committed by existing and long-term shareholders.

MONEYME have stated that proceeds from the Placement will be used to pay down USD 32 million of the group’s corporate debt facility, including the full repayment of the short-term SocietyOne acquisition. Additional cash of USD 3 million will be used to support balance sheet growth, with ongoing focus on higher credit quality borrowers, while the remaining USD 2 million will go towards transaction costs. MONEYME’s officials said they are pleased to announce that MONEYME has secured USD 37 million in a fully underwritten institutional equity placement and plans to offer retail investors a USD 5 million share purchase plan on the same terms.

How the funds will be used Company officials stated that the proceeds from the equity raising will be used to repay the short-term component of their 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 their share price recently. This repayment will also support their focus on increasing profitability through circa USD 7 million in annualised savings. The raise will also further strengthen MONEYME’s balance sheet and unrestricted cash balance and support measured growth and the pursuit of the significant opportunities ahead.

MONEYME’s profits have increased further, with USD 7 million NPAT delivered across January 2023 and February 2023. The average credit quality of the book also continues to increase, in line with the Group’s focus on higher credit quality borrowers, as per the press release. .