Perth-based tech company Peppermint Innovation have gained a key strategic partner after making an equity placement for $1 million at $0.02 a share. The 2c placement, which was done at double the last traded price for Peppermint shares, caused the company’s stock to jump by up to 60% yesterday, touching 1.6c a share before settling back to 1.4c.
Perth-based tech company Peppermint Innovation have gained a key strategic partner after making an equity placement for $1 million at $0.02 a share.
The 2c placement, which was done at double the last traded price for Peppermint shares, caused the company’s stock to jump by up to 60% yesterday, touching 1.6c a share before settling back to 1.4c.
The financial technology player said on Monday that the placement deal was executed with Australian-based Smidge Digital Unit Trust, which subscribes for minority positions in innovative fintech and enterprise data analytics companies.
Smidge claim that their unit holders are “significant influencers” in Asian markets that are capable of assisting Peppermint to get to market in those countries.
In addition to the $1 million placement, the deal also includes an option to place a further $1 million at a 25 per cent premium to the five-day volume weighted average share price within 60 days from the first placement.
Peppermint, who are rolling out their banking and non-banking payments solution platforms in the Philippines, said the partnership with Smidge Digital would be particularly beneficial given the entity’s understanding of the fintech sector, which would help to underpin further growth.
According to management, the funds will be used for working capital and in particular, to support the rollout of Peppermint’s mobile platform to the millions of Filipinos who don’t yet operate a bank account but still need to make bill payments.
Andrew Smith, Trustee Director of Smidge Digital Unit Trust said: “We’re extremely excited at the prospect of partnering with Peppermint and its innovative non-bank platform going forward. Our belief in the value of Peppermint is indicated by our agreement to provide $1,000,000 at 2 cents per share, and then to place a further $1,000,000 at a 25% premium to 5 day VWAP within 60 days after that first placement.”
“Smidge already has a strategic, long term investment in an enterprise data analytics company, which is another ‘ahead of the curve’ company, and this placement will compliment that investment perfectly. Our unit holders are significant influencers in many Asian markets, and will be offering the Company all the assistance they can to accelerate the Company’s growth”.
Peppermint’s disruptive technology, which takes the form of a mobile phone App, is designed for banks, mobile money operators, money transfer and funds remittance companies. It is already being used by a number of commercial banks in the Philippines.