MoneyMe’s successful completion of the Share Purchase Plan today comes after the $37 million cap raise in May.

Non-bank personal lender MoneyMe (ASX:MME) has just completed its Share Purchase Plan (SPP), raising around $4.3m from existing retail shareholders and providing the company with additional liquidity.

The successful SPP signals continued strong support from the company’s shareholders at a time when investors are generally cautious about making investments.

Under the SPP, new fully paid MME ordinary shares will be issued at $0.08 per share on Thursday 15 June, and are expected to commence trading on the ASX the following day.

MoneyMe CEO Clayton Howes said he was pleased to see such strong participation and enthusiasm from its retail shareholders, despite the lack of investments being made in the market at this time.

The SPP completion comes after MoneyMe successfully raised $37 million from institutional investors in May to pay down corporate debt.

In today’s announcement, MoneyMe confirmed that the planned corporate debt paydown had been completed last month. The $4.3m raised under the SPP would be used to strengthen its balance sheet with additional liquidity.

“We are pleased to announce the successful completion of our SPP, which will further strengthen our cash and liquidity position,” Howes said.

Profitable growth in FY24 and beyond

The successful $37 million cap raise in May, which was overwhelmingly approved by shareholders during the company’s extraordinary shareholder meeting, included a $4 million contribution from director Scott Emery.

MME said the $32 million paydown repaid the portion of its corporate debt facility that was used to finance the SocietyOne acquisition, restoring the facility to its original size of $50 million and resulting in significant cost savings.

Howes said it was “pleasing to see the business benefiting from improved commercial terms under its corporate debt facility, including a reduced cost of funds on a materially reduced facility”.

MME expects the paydown to drive circa $7 million in yearly interest cost savings, whilst also deleveraging the business and reducing risk.

According to Howes, the recent cap raises concludes MME’s strategic capital initiative and relieves the uncertainty that has been weighing on its share price.

“Completion of the recent equity placement, corporate debt paydown and SPP will allow us to focus on our current strategy,” he said.

The cap raise is also expected to position the business for sustainable and profitable growth in FY24 and beyond.

MoneyMe’s latest Q3 FY23 results showed that it increased gross revenue YoY by 75% to $61 million, while its ongoing focus on margin protection resulted in a net interest margin of 13% in the quarter.

This article was developed in collaboration with MONEYME, 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.

Read MoreFintech

Featured Companies

You might be interested in