QuickFee says the placement was supported by new and existing institutional, family office and sophisticated investors – and following QuickFee US’s highest-ever volumes in ACH, Card and Financing in March 2022, the company has raised new capital to enable it to accelerate its proven go-to-market strategies and leverage its completed proprietary technology stack.
“The combination of these is already delivering higher volumes, higher yield, higher revenue and lower operating expenses, which in turn will enable QuickFee to achieve profitability,” said QuickFee.
Commenting on the placement, QuickFee managing director and CEO Eric Lookhoff said “I am delighted by the progress QuickFee has made in accelerating our path to profitability. This financial year we have grown our US Pay Now volume by 47%, US Financing volume by 14% and US BNPL volume by 83%. We have successfully increased revenue yields on our ACH, Card, and Lending volumes and at the same time reduced our operating expenses2, with expected annualised savings of $4.0 million to A$4.5 million in FY23. We have attracted industry-wide professionals to our team and completed our proprietary payment technology stack, QUBE.
“These accomplishments taken together not only accelerate our path to profitability, but have also generated a greater competitive position, particularly in the US market.
“Our capacity for continued growth in the US professional services space has attracted the support and partnership of world-class payments organisations. Participating in this capital raise is Payroc, a global credit card and ACH processor, which globally facilitates US$65 billion of payments volume annually, along with the investment and continued confidence of existing major shareholders.
“I am grateful for their participation and that of our retail and institutional shareholders, which ensure that QuickFee is fully-funded as we continue to execute on our growth strategies and achieve near term profitability.”
Payroc CEO James Oberman said “Our relationship with QuickFee has been a key source of growth for Payroc since 2016. We are pleased not only to have provided QuickFee merchants with valuable Card acceptance services, but also witnessed QuickFee’s impressive evolution and growth. Joining the register as a shareholder just made sense as an investment, and we look forward to our continued partnership into the future.”
QuickFee lists placement details and use of proceeds and says the placement, at an issue price of $0.10 per share, represents the first stage of its broader capital raising, comprising:
- an offer of 36,500,000 million new shares under a placement (“tranche one placement”) to raise $3.65 million;
- an offer of 3,500,000 new shares under a further placement (“tranche two placement”) to related parties of QuickFee to raise up to $0.35 million, subject to receiving shareholder approval; and
- an offer of up to 5,000,000 new shares under a non-underwritten share purchase plan (“SPP”) to eligible shareholders with a registered address in Australia and New Zealand to raise up to $0.5 million,
New shares issued under the Capital Raising will rank pari passu with QuickFee’s existing ordinary shares and QuickFee has engaged Bell Potter Securities to act as lead manager and Arnold Bloch Leibler to act as Australian legal counsel for the capital raising.
QuickFee says the proceeds from the capital raising will be used:
- to provide additional working capital to achieve increased scale in QuickFee’s US target markets;
- to enable QuickFee to continue to invest in integrations and product enhancements to drive increased usage of the QuickFee products; and
- to fund the costs and expenses associated with capital raising.
The tranche one placement comprised an offer of 36,500,000 fully paid ordinary shares in QuickFee at an issue price of $0.10 per share, raising a total of $3.65 million. The issue price is equal to the last close price, and represents a discount of 5.3% to the 15-day VWAP prior to the trading halt, on Thursday, 5 May 2022.
The tranche one placement shares will be issued under the company’s existing 25% placement capacity for the purposes of ASX Listing Rules 7.1 and 7.1A – and the tranche two placement shares are expected to settle on Thursday, 12 May 2022 and will be issued on Friday, 13 May 2022.
QuickFee says the tranche two pllacement will comprise an offer to related parties of Dale Smorgon of 3,500,000 fully paid ordinary shares in QuickFee at an issue price of $0.10 per share, raising a total of $0.35 million.
“The company will seek shareholder approval to issue the tranche two placement shares for the purposes of ASX Listing Rule 10.11. Shareholder approval will be sought at an extraordinary general meeting. The date of the mxtraordinary general mMeeting will be provided at a later date.”
In addition to the two tranche placements, QuickFee announced that eligible shareholders will have the opportunity to purchase new shares under the SPP..
QuickFee says it will offer approximately 5,000,000 new shares under an SPP to eligible shareholders with a registered address in Australia and New Zealand to raise up to $0.5 million. The record date for participation in the SPP is 7:00pm (Sydney time) on Friday, 6 May 2022.
“The SPP will provide each eligible shareholder with the opportunity to apply for up to $30,000 worth of new shares. The new shares under the SPP are to be issued at the lower of the tranche one placement price ($0.10 per share) and the price that is a 5% discount to the VWAP of ordinary shares in QuickFee traded on the ASX over the five trading days up to, and including, the day on which the SPP closes. The eligibility criteria and other terms and conditions of the SPP will be set out in the SPP booklet and despatched to eligible shareholders in due course.
“The SPP aims to raise $0.5 million, however, the company may determine to raise a higher amount, or decide to scale back applications under the SPP in its absolute discretion,” QuickFee concluded.