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9 Spokes completes $5.9 million first tranche of placement to fund global roll-out

Published: 15:20 04 Sep 2020 AEST

9 Spokes completes $5.9 million first tranche of placement to fund global roll-out
The placement will fund the company’s operations in the near term

9 Spokes International Ltd (ASX:9SP) has completed the first $5.9 million tranche of a $10 million two-tranche placement to fund its operations for the next two years.

The company has issued 166 million fully paid ordinary shares for the first tranche, with the second tranche of about 111.8 million fully-paid shares expected to be issued on or around  September 29, 2020.

This is subject to the approval of shareholders at the company’s annual general meeting, which is expected to be held on or around Friday, 25 September 2020.

Securing new SaaS clients

The management app company said the funds, together with its existing cash, would go towards securing new SaaS banking clients organically and through the recently announced Visa and Fundation partnerships.

Chief executive Adrian Grant said: “This capital raise secures our cash runway into FY23, enabling us to focus on continuing to support SMBs, evolve our platform and deliver new bank customers through key global partnerships.

“We were supported by existing institutional shareholders and are pleased to welcome several new Australian-based institutional investors to the register.”

Growing global partnerships

Talks are also underway with potential new banking clients through the Visa partnership.

Grant said that over the past 18 months, the company has worked hard to ensure the platform can deploy and scale globally – and that 9SP can partner at scale.

He said: “Discussions with potential new banking clients under the Visa partnership are already underway and we see this as a great opportunity, given Visa has a global distribution network of 15,500 financial institutions.

“With the release of our V2 platform in FY20, the signing of recent distribution partnerships with Visa and Fundation, and now a strong cash position, we look forward to focusing on our core objective of rapidly growing our user base both directly through 9spokes.com and with our partners.”

Funding expansion

The funds raised will be used to:

  • Continue the focus on growing new banking partners globally;
  • Progressive global roll-out of 9spokes.com;
  • Continued partner development with strategic partners Visa U.S.A. Inc, Microsoft, and Fundation; and
  • Continued focus on R&D development of the 9Spokes platform.

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