Digital CC raises $3m for AirPocket rollout

Digital CC has completed a $3.5 million capital raising to fund the roll out of its remittance product AirPocket to Latin America and Caribbean markets.

The company raised the funds through a placement of about 16 million shares to sophisticated and institutional Australian and US investors at 22 cents each, and will bring Digital CC’s cash balance to $6 million.

It follows news that Digital CC had signed an agreement to establish a special purpose vehicle, which will facilitate the roll out of the AirPocket.

The unnamed American partner will own 25 per cent of the vehicle.

“The proceeds of the raising will be used to accelerate the strategic joint venture approach, marketing and user acquisition in the Latin American and Caribbean markets ahead of the upcoming launch of AirPocket,” the company said.

It also plans to use the funds raised to establish further partnerships in other geographic markets to expand the reach of its AirPocket product.

Local entrepreneur and Digital CC executive chairman Zhenya Tsvetnenko said the funds raised would support an aggressive marketing and sales strategy, initially in the Latin American and Caribbean regions and later into the Asian market.

The beta launch of AirPocket is scheduled for June, with the commercial launch expected in the fourth quarter of the year.

Patersons Securities acted as lead manager to the placement.

Digital CC shares were 8.7 per cent higher at 31 cents a share at 10am.