Listed NZ mobile payments company, Pushpay, is looking to raise $13.8 million to support its growth strategy for over 12 months.
The company intends to undertake a pro-rata non-renounceable entitlement offer, whereby each eligible shareholder will be entitled to apply for one new ordinary share in Pushpay for every 14 shares held by the eligible shareholder on the record date, at a subscription price of $3.85 per share.
Pushpay intends to utilise the proceeds from the entitlement offer to further develop its product offering and as working capital to accelerate growth in international markets, focusing on the US, increasing sales via its direct sales, referrals program, and strategic channel partnerships.
Pushpay is also in discussions with a number of US-based venture capital firms who the board believes have the potential to add significant value to the Pushpay opportunity.
The board says the additional funding will not exceed $10 million and is likely to be raised within the next six months.
Meanwhile, it has been approved for an R&D Project Grant from Callaghan Innovation. The grant allows for the co-funding by Callaghan Innovation of 40 per cent of approved R&D spending by Pushpay, with a total possible allocation of $960,000 (representing 40 per cent of $2.4 million) over an 18 month period.
“We are committed to delivering best in class SaaS metrics as the company continues to execute on its strategic plan driven through a keen focus from management and the teams coordinated across our USA and New Zealand operations,” said Chris Heaslip, Pushpay CEO.
“We are very pleased to receive continued support from Callaghan Innovation. This funding, once awarded, will provide additional resources to deliver scale and growth in the Pushpay platform through the development of new features, functionality for new markets, and scalable engineering processes and platforms.
“Pushpay will continue to drive innovation and focus on features that offer simpler, faster and more intuitive ways to make secure payments,” he said.
