Credit Intelligence confirms $6 million raise to fund its ‘disruptive’ BNPL expansion strategy
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Debt restructuring and fintech company, Credit Intelligence, has firm commitments from Clee Capital to raise $6 million at 4 cents a share. The capital raise is part of the company’s strategy to push its new BNPL platform, YOZO, into new global markets.
Credit Intelligence (ASX:CI1) has today announced an exciting development – advising the market that it has received firm commitments from Clee Capital to raise $6 million at 4 cents per share.
The funds have been earmarked to support the development of the company’s newly launched BNPL platform YOZO, as well as the expansion of its debt restructuring business into the UK and other global markets, including the US.
CI1’s CEO, Jimmie Wong, said that the company has big plans to expand its offerings into the global arena.
“The financial support of Clee Capital and their sophisticated and institutional investors in this capital raise backs the global expansion plans of CI1. CI1 is now embarking on exciting expansion plans for new and existing businesses in global markets.”
The company’s recently announced YOZO platform is a unique offering within the BNPL segment, and has the potential to disrupt the SME lending market in Australia and overseas.
The platform leverages AI and machine learning to help small businesses manage payments and improve their cash flow.
Wong described YOZO as being “totally different from other personal BNPL products being offered in Australia right now.”
The platform’s unique features include flexible repayments which allow small business clients to choose their own repayment dates to better align with cash flows. For most SMEs, this is a crucial feature as cash flow is the lifeblood of the business.
It also features AI-powered, same-day loan approvals, which has the capacity to adjust borrower limits without loan re-applications.
The funds raised today will expand the YOZO offering beyond its native markets in Australia and Asia, as the company looks for new global markets in the UK and the US.
Wong said that the addition of the YOZO business to its already successful insolvency and credit businesses means the company will benefit in both cycles of the economy.
“CI1 is a company that benefits during strong economic times and bad economic times.
During strong economic times, our lending business and YOZO business will perform well. In the event of economic downturn or recession, CI1 is uniquely placed to also thrive during these unfortunate times from our debt restructuring and credit repair businesses”, he said.
CI1’s traditional business is in the debt restructuring and personal insolvency space – which it operates in Hong Kong and Singapore. It handles more than 10,000 bankruptcy cases in Hong Kong, and offers personal loans in Singapore as an alternative to banks.
The company’s latest financials from those businesses show that half-year profits have increased by 42% over the previous period – which came on the back of a 21% increase in revenue to $7.37 million.
As part of the capital raise, CI1 will issue 150 million shares with an option attached for every 2 shares. The option will allow holders to buy CI1’s shares at the price of 10c each, and expires in two years from the date of issue. The issue is expected to be on or before 10 March.
As lead manager, Clee Capital will be entitled to receive 60 million options, as well as 6% commission on the gross amount raised.
The option component will be subject to shareholders approval at an Extraordinary General Meeting to be held on or around April 14, 2021.
The shares of CI1 have been on a trading halt since March 3, pending the announcement of this capital raise. It last traded at 4.9c.
This article was developed in collaboration with Credit Intelligence, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.