Electronic payment solutions company Spenda Ltd (ASX:SPX, OTC:CROTF) has raised A$7.175 million in a private placement with a new cornerstone investment from Capricorn Society Ltd.
Capricorn’s cornerstone investment — now standing at 13.75% of Spenda’s issued capital — follows extensive due diligence by the member-based organisation and reflects its confidence in Spenda’s unique payments software and the company’s earnings potential over time.
Funded to achieve commercial ambitions
Spenda is now sufficiently funded to achieve its commercial ambitions with the funds raised to be principally used for investment in further product development as well as general working capital.
The placement saw Spenda issue 592,975,206 shares at A$0.0121 per share — a discount of around 9.97% to the 15-day VWAP and 7.7% to the 30-day VWAP with the shares to be issued on or around January 31, 2024.
Capricorn was established in 1974 to support businesses in the automotive industry. Its current network consists of more than 26,000 members and above 2,000 preferred suppliers in every state and territory in Australia and New Zealand.
Every month Capricorn’s members purchase around A$270 million in parts from the approved supplier network.
"Built on solid foundation"
Spenda’s CEO and managing director Adrian Floate said, “After 21 years of collaboration and joint technology initiatives we have developed a very close trusted relationship.
"This investment is built on a solid foundation of past execution and belief in the future potential the Spenda platform represents to Capricorn, its network of members and suppliers and the wider opportunity to enable suppliers to get paid faster.
"I am delighted to be in business with Capricorn and I am looking forward to the many things we can do together in the coming years.”
Aligned to accelerate growth
Capricorn’s new cornerstone investment follows a 10-year master services and licence agreement signed with Spenda in December to provide software and ecommerce payments infrastructure. That followed the successful completion of the foundation stage of the digital services delivery (DSD) initiative.
The master services and licence agreement lays a foundation for both parties to build further joint initiatives that can improve the digitisation of the automotive industry over a decades-long horizon.
Capricorn and Spenda have identified an array of opportunities, under this MSLA, each of which will have additional contracted revenue potential.
This cornerstone investment ensures that Capricorn and Spenda are aligned in their desire to accelerate Spenda’s growth.
Capricorn CEO (Automotive) Bradley Gannon said: “This is a significant and important investment for Capricorn. Our investment reflects the importance of our relationship with Spenda, the long history in which we have worked together and our confidence in the future success of Spenda as it further grows its client base.”