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Midpoint Holdings Ltd raising new capital with share placing

The international payments and money transfer group is issuing up to 10mln new units, each comprising one common share and one half share warrant.
Midpoint Holdings Ltd raising new capital with share placing
Midpoint has been seeing higher volumes though its online currency exchange.

Midpoint Holdings (CVE:MPT) told investors it is raising up to US$1mln via a private placement of new shares.

The international payments and money transfer group is issuing up to 10mln new units, each comprising one common share and one half share warrant.

Whole share warrants allow investors to acquire additional new common shares over a 24 month period, at a price of 20 cents subject to certain share performance conditions.

At the start of March, Midpoint revealed that volumes through its web-based forex trading platform grow again in the three months to December.

The company’s online marketplace - which matches buyers and sellers of foreign currency at the midpoint price - saw sales rise to C$66,000 (C$39,000) in the quarter taking the Total for the half year to C$123,000, a near 80% improvement on the same period a year earlier.

Total transaction volume increased 19% and the number of trades increased by 11%. The number of repeat users also rose to 88% from 50% with an average transaction size now of C$31,000. The average transaction size is $31,000 and the average client has transacted over $85,000

Higher transaction costs meant losses for the quarter were little changed at C$264,000 and rose slightly to C$592,000 over the six months, though Midpoint is still essentially in start-up mode as it develops its website and administrative platform.

Midpoint also announced it was extending its partnership with on-line accounting software group  Xero, with the release of a pay now app.

It is the latest development in the partnership between Midpoint and Xero, which was announced in July, 2015.

The integration of the Midpoint platform will enable Xero's 600,000-plus subscribers to save money on their foreign invoices through buying currency at the midpoint of the buy-and-sell rate.

"This development paints a picture of the future of e-invoice FX payments,” Midpoint chief operating officer Brad Lemkus said, on March 3.

“The process is easy and seamless, delivers unbeatable value and simultaneously updates a user's Xero software, whether a vendor or customer."

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