Rubik announces capital raising

Mortgage technology provider Rubik Financial has announced it will undertake a proposed capital raising following strong half-yearly revenue growth in its banking and mortgage products.

Rubik said in an ASX update that the capital raising would be by way of a non-renounceable rights issue at a price of $0.10 per share, “subject to the satisfaction of various conditions precedent”.

“Such a raising would see the company issue up to approximately 52.9 million new shares, raising approximately $5 million (net of costs),” it said.

Rubik said the proposed rights issue is to provide up to $3 million in capital to accelerate the company’s key banking and wealth offerings, and up to $2 million to repay outstanding short-term debt.

“Any balance will be used to meet the costs of this capital raising and fund the general working capital requirements of the business,” it added.

Rubik’s announcement comes after the group posted strong revenue growth in its banking and mortgage products during the first half of the 2015-16 financial year.

Its banking products saw a revenue increase of 25.3 per cent to $7.15 million in the six months to 31 December 2015 compared to the same period a year earlier, while Rubik’s mortgage software suite grew 17.6 per cent in revenue over the period to $3.61 million.

[Related: Rubik announces new CEO]

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