Powered by MOMENTUM MEDIA
subscribe to our newsletter

DirectMoney announces capital raising

ASX-listed lender DirectMoney is looking to further boost its lending and marketing capability by undertaking a capital raising.

The company said in an ASX statement that it is offering eligible shareholders the opportunity to participate in a pro-rata non-renounceable offer of one new share for every two existing shares held at an issue price of 4.2 cents per new share, with the aim of raising up to $5.7 million.

“The company intends to apply the funds to support key business objectives and growth projects”, DirectMoney said.

Specifically, DirectMoney plans to use $2 million of the funding for “additional lending to approved loan applicants”, while $1.8 million will go towards “general working capital” and $1 million will serve as “available capital to use as collateral for proposed future loan sale transactions to major Australian financial institutions”.

Over the next 12 months, the lender also plans to put $300,000 towards the marketing of its Personal Loan Fund, and $250,000 will be set aside to cover the costs of BDM and broker support, as well as broker channel marketing.

Advertisement
Advertisement

PROMOTED CONTENT


DirectMoney said the remaining $400,000 from the capital raising will cover the costs of the offer.

The announcement comes after DirectMoney signed a non-binding Term Sheet agreement with a major bank to establish a $20 million three-year loan sale facility.

[Related: DirectMoney inks loan referral deal with MyState]

DirectMoney announces capital raising
mortgagebusiness

Latest News

The managing director of AMP Bank, Rod Finch, is set to join BOQ in April as its first director of transformation, as the bank continues to...

Dwelling unit commencements have continued to fall but the bright spot has been new private sector houses, figures have shown. ...

Over 75,000 households have applied for a HomeBuilder grant, with the majority of applications relating to the construction of a new home, a...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.