Cash Converters International has boosted its coffers with a $39.5 million capital raising, with the proceeds set to strengthen the company’s balance sheet and be used to reduce debt.
The non-renounceable entitlement offer was completed at 32 cents per share, representing a 12.8 per cent discount on the company’s five-day volume-weighted average price.
The offer was undertaken on a four-for-one basis, with major shareholder EZCORP committing to $12.5 million worth of shares.
Hartleys acted as lead manager to the placement and has underwritten $21 million of the offer.
“This entitlement offer is important, for growth and improving our balance sheet, reducing our net debt and gearing ratio,” Cashies chief executive Mark Reid said.
“The additional capital will allow flexibility to pursue growth opportunities whilst maintaining sufficient working capital.”
Shares in Cashies were off 6.9 per cent at 34 cents each today.