9Spokes raises A$10 million in institutional placement to fund operations for next two years

9Spokes International Ltd (ASX:9SP) has raised A$10 million via a two-tranche placement to help fund its operations for the next two years, based on its existing anticipated operations.

The management app company said the funds, together with its existing cash, would go towards securing new SaaS banking clients organically and through the recently announced Visa and Fundation partnerships.

Talks are also underway with potential new banking clients through the Visa partnership.

“Cash runway into FY23”

Chief executive Adrian Grant said: “This capital raise secures our cash runway into FY23, enabling us to focus on continuing to support SMBs, evolve our platform and deliver new bank customers through key global partnerships.

“We were supported by existing institutional shareholders and are pleased to welcome several new Australian-based institutional investors to the register

“This interest in 9Spokes demonstrates continued confidence in what were doing, the strategic direction we have taken the company, and the recent partnerships we have entered with Visa and Fundation.”

Potential new clients

Grant said: “Discussions with potential new banking clients under the Visa partnership are already underway and we see this as a great opportunity, given Visa has a global distribution network of 15,500 financial institutions.

“Over the past 18 months, we have worked hard to ensure that our platform can deploy and scale globally. Further, we wanted to ensure that we can partner at scale.

“With the release of our V2 platform in FY20, the signing of recent distribution partnerships with Visa and Fundation, and now a strong cash position, we look forward to focusing on our core objective of rapidly growing our user base both directly through and with our partners.”

Two-tranche placement

Under the placement, a total of 277,777,778 new ordinary shares will be issued at 3.6 cents each to existing institutional shareholders, including Alium Alpha Fund, and a small number of new key Australian-based institutional investors.

The capital raise is supported by existing institutional shareholders and introduces a small number of new Australian-based institutional investors to the register

The two tranches comprise:

➢ Tranche 1 will consist of around 66 million shares issued within the companys plaRead More – Source