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Midpoint raises cash through share placement

The foreign exchange trading platform provider closed the first tranche of the offering on October 28
Midpoint raises cash through share placement
Midpoint is the originator of the peer to peer foreign exchange business concept

---ADDS SHARE PRICE---

Midpoint Holdings (CVE.MPT) is to raise up to C$3mln through a private placement of up to 20mln units at 15 cents a pop.

Each unit will comprise one Midpoint common share and half of a one common share purchase warrant. The warrants have a lifetime of 24 months from the closing date of the share offer and are convertible at 30 cents each, subject to various restrictions.

The foreign exchange trading platform provider closed the first tranche of the offering on October 28, 2015, which consisted of the issuance of an aggregate of 2.89mln units for gross proceeds of just over $433,000.

The common shares and the warrants comprising the units issued in connection with the completion of the first tranche of the offering are subject to a hold period of four months and a day.

Midpoint said funds from the share issue will be used for general working capital purposes.

The company also issued its audited financial statements for the year to the end of June on Thursday.

The numbers revealed that revenue is growing fast, albeit from a small base, with the top line climbing to C$158,068 from C$49,698 the year before.

Speaking previously to Proactive Investors, however, chairman and chief executive John Booth said the revenue figures do not do justice to the scale of money passing through Midpoint's platform; Booth calculates around C$60mln has gone through the system since the company’s reboot a couple of years ago.

The company's audited loss for last year was C$1.27mln, compared to a loss of C$1.35mln the year before.

Shares in Midpoint shot up 8.7% to 12.5 cents in the morning trading session in Toronto.

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