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The non-bank lender has confirmed the launch of a $37 million fully underwritten share placement at $0.08 per share, representing a 24 per cent discount to the last traded price of $0.105 on 20 March 2023.
MONEYME stated the proceeds from the share placement will go towards paying down $32 million of its corporate debt facility, including a full repayment of the short-term SocietyOne acquisition component of the corporate facility.
Furthermore, additional cash of $3 million will go towards supporting balance sheet growth, with a continued focus on higher credit quality borrowers and the remaining $2 million will be used for transaction costs.
MONEYME chief executive and managing director Clayton Howes said the non-bank lender is pleased to secure the placement and plans to offer retail investors a $5 million share purchase plan on the same terms.
“The support from new and existing investors despite extremely tight capital markets underpins their confidence in our profitable business model, unique tech-driven advantages, and ability to execute on our strategic vision,” Mr Howes stated.
“The raise will also further strengthen our balance sheet and unrestricted cash balance and support measured growth and the pursuit of the significant opportunities ahead of us.
“I am very proud of our business and our team’s ability to execute successfully on our strategy to combat the challenging times for the sector.
“We have proven an ability to grow, adapt, and deliver profit, while also launching industry-disrupting, hard-to-replicate innovations.”
MONEYME join lenders in pushing for BNPL regulations
The non-bank lender recently flagged that regulating buy now, pay later (BNPL) products would improve the accuracy of credit assessments for borrowers while levelling the playing field across lenders and BNPL providers and close the credit reporting “blind spot” created by omitting BNPL from the Credit Act.
Mr Howes commented on the matter: “We are strong believers in responsible lending and responsible borrowing, for the sake of both consumers and lenders alike.
“So we welcome the federal government’s intention to improve consumer credit regulation, and in particular the proposals that would see BNPL providers subjected to the same obligations as other lenders.
“Accurate and extensive credit reporting allows lenders to be more accurate in our credit decisioning and, in turn, helps to protect consumers.
“The limitation of BNPL data in credit reporting creates a blind spot for lenders and hinders us from getting a holistic view of a person’s indebtedness and their ability to meet repayments.”
[RELATED: Lenders back BNPL regulations]