Cash Converters raises $32.7m for growth plans

Cash Converters has announced a $32.7 million share placement to acquire franchise stores, open new corporate locations and finance its Australian and UK personal loans business.

Cash Converters said the placement was being made to institutional and sophisticated investor clients of Hartleys and is priced at 85 cents per share.

“The placement was substantially oversubscribed with strong support from existing and new institutional investors,” managing director Peter Cumins said.

“This capital raising places us in a very strong position to increase our corporate store network and to fund the fast growing personal loans books.

“Following our strong first quarter and the growth opportunities we see ahead, the outlook for Cash Converters is very promising.”

At close of trade today Cash Converters shares had jumped 13.9 per cent, trading at $1.02.