9Spokes International Ltd (ASX:9SP) has been given the green light by shareholders at the annual general meeting for the issue and allotment of the second tranche of 111.8 million shares to raise a further A$4 million.
This completes a $10 million two-tranche placement which is expected to fund the company’s operations for the next two years.
It is expected that settlement of the second tranche shares will occur on Wednesday, September 30, 2020, with allotment on Thursday, October 1.
Focus on business development
Chief executive officer Adrian Grant: “We thank our shareholders for the endorsement of the placement.
“Closing the second tranche ensures that we can continue to maintain our momentum, focus on product and business development, and customer engagement.”
Funds to secure new 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.
Grant continued: “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.”
Visa partnership discussions
Talks are also underway with potential new banking clients through the Visa partnership.
Grant said recently that over the past 18 months, the company had worked hard to ensure the platform could deploy and scale globally – and that 9SP could partner at scale.
He said: “Discussions with potential new banking clients under the Visa partnership are 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.”