Successful $20 Million Capital Raising and Finsure Transaction Update
- Oversubscribed placement to raise ~$20.0 million in satisfaction of another condition precedent to the Finsure Transaction
- The Finsure Transaction is now only subject to Goldfields Money shareholder approvals and largely procedural conditions, with the Finsure Transaction expected to complete on 14 September 2018
- Finsure achieved a record month of loan settlements in July 2018 of ~$1.3 billion
The Company is also pleased to provide an update in relation to the proposed merger between the Company and Finsure ("Finsure Transaction"), including the anticipated transaction timetable and satisfaction of another condition precedent, and the continued growth of Finsure with another record month of loan settlements achieved.
Goldfields Money CEO Simon Lyons said this over-subscribed capital raise is the largest in the Company's history and is a strong show of support for Goldfields Money's growth strategy and the Finsure Transaction.
"The overwhelming support for our largest ever capital raise is a vote of confidence from new and existing Goldfields Money shareholders in support of the Finsure Transaction, which will fast-track our growth."
"I'm also pleased to report that Finsure has just achieved a record month, with loan settlements in July 2018 reaching ~$1.3 billion including ~$72 million in wholesale loan settlements."
"Aside from largely procedural conditions, the Finsure Transaction is now only subject to Goldfields Money shareholder approvals to be considered at our General Meeting of shareholders this Friday, 7 September 2018."
"I, along with the other Independent Directors, strongly encourage you to vote in favour of the resolutions to approve the Finsure Transaction in the absence of a superior proposal and subject to the Independent Expert maintaining its conclusion that the Finsure Transaction is reasonable," Mr Lyons said.
The Placement will result in the issue of 15,385,000 new fully paid ordinary shares at an issue price of $1.30 per share to raise ~$20 million (before costs), such shares to be issued contemporaneously with completion of the Finsure Transaction. The new shares will be issued on the same terms as the Company's existing ordinary shares.
The net proceeds from the Placement will be used to support the Company's prudential capital requirements and enable the Company to pursue further lending growth.
Issue of the Placement shares is subject to Goldfields Money shareholder approval at the General Meeting to be held on Friday, 7 September 2018, and subject to the passing of the required resolutions, settlement of the Placement is expected to occur on 14 September 2018, with issue and trading of the Placement shares expected to commence on the ASX on Monday, 17 September 2018.
Finsure Transaction Update - Transaction Timetable
The Notice of Meeting for the General Meeting to consider the resolutions required to implement the Finsure Transaction and the Placement has been sent to Goldfields Money shareholders. The Notice of Meeting includes an Explanatory Memorandum containing full details of the Finsure Transaction, together with a report from an Independent Expert as to whether in their opinion the Finsure Transaction is fair and reasonable to Goldfields Money shareholders.
All information the Board considers is required by Goldfields Money shareholders to allow them to make an informed decision in respect of the Finsure Transaction is contained in the Notice of Meeting. The Board recommends that Goldfields Money shareholders read the Notice of Meeting and accompanying documents in full.
The table below shows the currently anticipated transaction timetable.
-------------------------------------------------------------------- Event Date -------------------------------------------------------------------- Deadline for receipt of Proxy Forms 11:00am AWST on 5 September 2018 Voting eligibility date 5:00pm AWST on 5 September 2018 Shareholder meeting 11:00am AWST on 7 September 2018 Expected date for Completion 14 September 2018 --------------------------------------------------------------------
Finsure Transaction Update - Conditions Precedent
With ~$20.0 million of binding commitments received pursuant to the Placement, the Finsure Transaction is now only subject to Goldfields Money shareholder approvals (to be considered at the shareholder meeting on 7 September) and satisfaction (or waiver, if applicable) of the other remaining conditions that are considered largely procedural in nature:
- Approval from the ASX for the quotation of the Consideration shares; and
- No Goldfields Money or Finsure material adverse effect or "prescribed event".
If you require assistance, you can call the Goldfields Money Shareholder information line on 1300 308 375 (within Australia) or +61 8 6314 6314 (outside Australia) at any time between 9:00am and 5:00pm (AWST) on Monday to Friday.
Hartleys Limited acted as Lead Manager for the Placement.
Goldfields Money's financial adviser is Azure Capital and its legal adviser is Lavan.
To view tables, please visit:
About Goldfields Money Ltd
Goldfields Money (ASX:GMY) is Australia's new revolutionary digital bank, distributing first class products through a largely branchless distribution network. A bank without the bank. This digital banking platform is built on the recently implemented mobile first, world class core banking system provided by Temenos and our proprietary mortgage distribution software "Loankit".
Goldfields is ASX listed (ASX:GMY) with two key divisions:
Banking (operates under "Goldfields Money" and "Better Choice" brands) - an APRA regulated bank that offers deposit and loan products that are funded either on-balance sheet or off-balance sheet through a range of third party lenders. Our deposits are all guaranteed by the Australian Government Deposit Guarantee for up to $250,000 per customer. We are the new approach to banking in Australia, we're honest, with transparent bank practices and a straightforward approach to you and your money. It's all yours, honestly.
Mortgage Aggregation (operates under "Finsure" and "Loankit" brands) - an ASIC regulated mortgage aggregation and software technology platform with over 1,475 loan writers as of 31 August 2018. Finsure puts brokers first and is a leader in the market in offering a diverse lending panel, flexible commission models, training, lead generation, proprietary SaaS and mortgage broker support services. Finsure was also recently named Aggregator of the Year for 2017 at the Australian Mortgage Awards.
Goldfields Money Ltd