Investors throw support behind Peppermint’s growth strategy with stock conversions
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The exercise and conversion of options and notes into Peppermint’s shares has provided the company with the flexibility to execute on its growth strategy.
Investors have shown their support and commitment for Peppermint Innovation’s (ASX:PIL) growth strategy, converting their stock options and convertible notes into PIL shares.
As a result of 174.5 million options being exercised, $1.865 million of additional working capital has been received by Peppermint to execute its business growth strategy.
The conversion of the notes into PIL shares has also removed $1.42 million of debt and has effectively strengthened the company’s overall balance sheet.
Peppermint’s CEO, Chris Kain, says the additional funds provides the company with the financial flexibility to execute on its goals.
“Our investors have again demonstrated a strong commitment in the company’s growth strategy by converting 74% of all outstanding options, and 73% of all convertible notes into ordinary fully paid shares in Peppermint,” Kain said.
“This support translates into an additional A$1.865 million in working capital for the company to execute our business growth strategy – in particular, the establishment of our bizmoPay operations that we will soon be in a position to update the market on.”
“In addition, the conversion of 73% of the issued convertible notes significantly reduces the company’s debt position, which strengthens our overall balance sheet and provides us with financial flexibility moving forward,” Kain added.
The company’s strategy is to provide an alternative non-bank micro-enterprise lending for the millions of Filipinos who are either unbanked or under-banked.
This strategy revolves around the bizmoto app, its micro-enterprise app platform which operates in four vertical silos built under one ecosystem.
The four verticals encompass payments, delivery & logistics, ecommerce and financial services.
But key to all this is the pending approval from the Philippines’ regulator for a financial lending licence, which will allow its bizmoto agents to apply for a micro-loan to enable more transactions within the ecosystem.
The company has so far signed up over 55,000 bizmoto agents across the country.
“We are awaiting final approvals for our finance licence from the Philippines’ Securities Exchange Commission, which will be a significant milestone in the company’s strategy to provide an alternative non-bank micro-enterprise lending platform, via the bizmoto mobile app,” Kain said.
Around 74 per cent of 234.5 million outstanding stock options, or 174,500,000, were exercised – meaning Peppermint will issue 174.5 million ordinary fully paid shares to the option holders, and in return, will receive $1.865 million in fresh funds.
The remaining 26 per cent of the outstanding options have an expiry date of 31 December 2021, and February 2024.
In addition, around 73 per cent of 1,673,058 outstanding convertible notes, or 1,234,626, were converted to fully paid shares – meaning $1,426,334 of debt has effectively been converted into equity on the company’s balance sheet.
Each note was purchased for $1.00 and converted to ordinary fully paid shares at a price of $0.01 per share, for the principal plus interest outstanding on the relevant notes.
The remaining 27% of Convertible Notes have a maturity date of April 2022.
This cleansing prospectus will remain open until the closing date of 29 July 2021.
This article was developed in collaboration with Peppermint, 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.