Peppermint’s $4m capital raise brings it a step closer to Philippines EMI licence
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Peppermint will use a fresh $4m capital raise to support capital requirements for its Electronic Money Issuer application in the Philippines.
Fintech company Peppermint Innovation (ASX:PIL) has received firm commitments for a $4m capital raise – funds which will progress its Electronic Money Issuer (EMI) Licence application and commercial roll-out of bizmoPay loan service, the news sending the share price up 9.52 per cent to 2.3 cents.
The placement to sophisticated and professional investors is at 2 cents per share seeing initially 200m shares issued, with an attaching option exercisable at 3 cents on or before June 30, 2023 for every three shares held.
Peppermint intends to seek quotation of the options, subject to meeting ASX requirements. The company will also conduct a bonus issue of options to all Australian and New Zealand registered shareholders enabling them to acquire shares at 2 cents per share.
Under the capital raise it is proposed Peppermint will issue one option for every 10 shares held at the record date, exercisable at 2 cents per share.
Upon exercising these options, shareholders will receive a further option exercisable at 3 cents per share expiring on 30 June 2023, to be listed on the ASX.
Clee Capital has acted as lead manager for the placement and will be paid 2% of gross proceeds as a management fee, 4% of gross proceeds as a capital raising fee and 24,000,000 options exercisable at 3 cents per share expiring on June 30, 2023, to be listed on the ASX.
Peppermint’s managing director and CEO Chris Kain said timing of the placement has worked out well. He said the company had just received official notice of eligibility to proceed to the final state of its EMI application with the Central Bank of the Philippines (BSP).
“What this means is our request to the BSP, lodged via the Stage 2 EMI application process, to issue a ‘Letter of No Objection’ to register with the Securities and Exchange Commission (SEC) for authority to operate as an electronic money issuer has now been granted,” Kain said.
“Funds from the placement will be used to satisfy the SEC stipulated paid-up capital requirements of Php 100m (~A$3m), a key criteria of Peppermint’s stage 3 EMI licence application.”
Kain said investors had strongly backed the company’s growth strategy with commitments for this placement of $4 million quickly secured.
“We again welcome the support of Clee Capital as lead manager to this raise and were delighted to have a mix of existing and new sophisticated and professional investors take up the capital raise offer in just one day,” he said.
Peppermint’s long-awaited commercial rollout of its micro-enterprise loan platform, bizmoPay, commenced this month.
The Phase 1 commercial launch of bizmoPay will enable any of bizmoto’s 56,000 agents to access the three bizmoPay micro-loan products via its mobile bizmoto app.
The launch follows a regulatory licence approval in July, and successful three-month pilot program designed to test the platform, and ensure a seamless integration of its bizmoPay program with the bizmoto mobile app.
Meanwhile, Peppermint has completed a solid last quarter and is well funded, with a strong cash position in the bank of $2.7m at quarter end.
The company has also entered a deal with Dragonpay — one of the largest online payment gateway platforms in the Philippines
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.