SelfWealth raises $1.4m, launches exchange-traded fund as it seeks to get out of the red
Online stockbroker SelfWealth has raised $1.4 million, launched a $1.5m rights issue and secured $100m in seed funding to develop an exchange-traded fund (ETF) as it tries to haul itself towards profitability.
SelfWealth (ASX:SWF) is a broker that prides itself on its $9.50 per trade flat-fee platform. The company posted a loss of $5.3m for the 2018 financial year, 66 per cent worse than 2017. That was after posting a $2.5m loss for the 2018 first half.
But the company’s founder and managing director Andrew Ward said it was “well on [its] way to reporting the strongest quarter yet”.
“Within the first year of its launch, the ETF could potentially comprise 20 per cent of our total revenue,” he told investors.
SelfWealth picked up $1.4m from the placement of 20.5 million shares at 7c a pop, and has also launched a rights issue to raise up to $1.5 million from existing shareholders.
It has also secured $100 million in seed funding from Australian ETF pioneer Graham Tuckwell’s ETFS Capital to develop the ETF, which SelfWealth says will launch in the first quarter of the 2019 calendar year.
Despite this news, SWF shares fell to an equal year-long low of 7.5c.