Cirralto Ltd (ASX:CRO) has raised $2.7 million through an oversubscribed placement to institutional and sophisticated investors, designed to grow the Spenda business payments service in line with CRO's transition to a digital payments company.
The company had initially set out to raise $2 million but received strong demand from a large number of new institutional and sophisticated investors and has elected to accommodate a portion of the excess demand to raise an additional $712,000.
Demonstrating their support for Cirralto and its future operations, directors and management have subscribed for a total A$82,000 in the placement.
Funds to deliver debt-free balance sheet
Managing director Adrian Floate said: "The strong demand for this capital raise was very pleasing and I feel recognition of the investors understanding of our payments tech and its position in the market.
“These funds coupled with the operational savings we have created by virtualising our organisation will be used to deliver a debt-free balance sheet and provide working capital for growth.
“We are focused on growing our merchant base and capturing market share – the board and I remain strongly supportive of the company as demonstrated by our participation in this placement.”
Use of funds
Funds raised will be used to support growth, additional payments product development, debt reduction, marketing, costs associated with the completion of the acquisition of Appstablishment and general working capital requirements.
Some of the new funds will be used to strengthen the companys balance sheet and retire about A$1 million in debt and debt-related instruments, including the Obsidian Global Partners LLP Funding Facility.