Investors in ASX-listed fintech Peppermint Innovation Limited have welcomed news of a revised $1million placement with strategic investor Smidge Digital Unit Trust.
Announcing terms of the revised deal to the market this morning, Peppermint shares jumped eight per cent to be trading as high as 2.7 cents, before settling at 2.6 cents.
Smidge’s Trustee Director Andrew Smith said Peppermint’s innovative technology was clearly ‘ahead of the curve’ and he believed Peppermint was currently under-valued.
We have backed Peppermint because it complements another ‘ahead of the curve’ investment that Smidge has with its enterprise data analytics interests,” Mr Smith said.
“Also, our unit holders – who include significant influencers in several Asian markets – are now actively working with Peppermint to open up new opportunities in the Asian region.”
Under revised terms of the option agreement, Peppermint has agreed to place the $1million worth of shares with Smidge in two tranches – $300,000 in April and $700,000 by the end of May.
Both tranches will be invested at a premium to Peppermint’s current share price.
The first tranche of $300,000 will be invested at a 25% premium to Peppermint’s 30-day VWAP at the time of issue or a minimum of 2.3 cents (whichever is the higher) while the remaining $700,000 will be invested at a 25% premium to the 14-day VWAP at the time of issue or a minimum of 2.5 cents (whichever is higher).
Peppermint’s Managing Director Chris Kain said Smidge’s commitment to invest in Peppermint at a premium to its prevailing share price on three separate occasions clearly demonstrated its belief and commitment to the company’s objectives and growth strategy.
“We will continue to work closely with Smidge and their allied parties in the Asian markets with a view to opening up new opportunities for Peppermint in the region,” Mr Kain said.
The funds will be used for working capital and to support the planned acquisition of Australian international remittance business, RemitWisely.
Formed in 2017, RemitWisely provides money transfer and remittance services from Australia to more than 200 countries around the world in more than 50 plus currencies – all on one platform.
It processed AUD$5.5 million in remittances in its first year of operation.