Way2VAT Ltd (ASX:W2V) is raising $1.1 million in a private placement after securing commitments from new and existing institutional and sophisticated investors at an issue price of $0.026 per share.
The company intends to use the funding to scale up the marking capability of its expanding product suite and technology platform and to continue the rollout of the Smart Spend Debit Mastercard (NYSE:MA) in targeted sectors.
Proceeds will be mainly used to invest in projects and initiatives to:
- accelerate sales and marketing campaigns;
- continue rollout of Smart Spend Debt Mastercard; and
- provide working capital and balance sheet strength.
“We are delighted this placement has enabled new and existing shareholders to show their support for Way2VAT which will provide the company with additional investment in sales and marketing to further accelerate growth opportunities as market conditions improve, as evidenced by escalating gross transaction volumes,” Way2VAT CEO and founder Amos Simantov said.
“With the global easing of COVID-related travel restrictions and business travel beginning to normalise, Way2VAT is keen to harness the opportunity that exists for our broadening product suite that covers local and international VAT and expense reclaims as well as our Smart Spend Debt Mastercard.”
Placement details
This placement, which is not underwritten, received strong support from new and existing institutional and sophisticated investors, demonstrating strong endorsement for Way2VAT’s growth plans.
The price of A$0.026 represents a 13.9% discount to the 10-day volume weighted average price of the shares of A$0.0302 recorded on ASX prior to December 5, 2022, being the date of the trading halt.
There will be 42,307,693 shares issued under the placement in two tranches which will utilise the company's ASX Listing Rule 7.1 and 7.1a capacity.
Settlement of 38,461,539 shares under the placement is expected to occur on Tuesday, December 13, 2022, and settlement of the remaining 3,846,154 shares is expected to occur on Monday, January 16, 2023.
All shares issued under the placement will rank equally with existing fully paid ordinary shares in the company.