iSignthis announced $10m institutional placement completed
- $10m raised at 14.5c per share
- Funds to be used to satisfy prudential Tier 1 capital requirements
iSignthis Ltd (ASX : ISX | DE : TA8) (Company) is pleased to advise that it has today successfully secured a placement of 68,965,517 ordinary shares in the Company to a number of sophisticated and wholesale investors at a price of A$0.145 per share, raising A$10m before costs (“Placement”).
The Placement was Jointly led and managed by Merchant Corporate Advisory and Petra Capital.
The new shares to be issued under the Placement will rank equally with existing fully paid ordinary shares in the Company.
The Placement was conducted in accordance with ASX Listing Rule 7.1.
The expected date of issue of the securities is Monday, 8th October 2018.
Purpose / Use of Proceeds
The Company has recently applied to the Australian Prudential Regulation Authority (APRA) for Authority to carry on banking business as a Provider of a Purchased Payment Facility (PPF Provider) under the Banking Act 1959.
The $10m capital raising includes the capital requirements the Company anticipates will be required to satisfy the minimum prudential Tier 1 capital requirements for licensing of the Company’s subsidiary, iSignthis eMoney (AU) Pty Ltd (“ISEMAU”), as a PPF Provider, a special class of Authorised Deposit-taking Institution (ADI) that are authorised to undertake a limited range of banking activities.
The conditions are anticipated to be similar to those imposed on Paypal Australia Pty Limited, being the only other PPF Provider ADI licensed by APRA.
The license application is still under review by APRA and may be subject to other conditions.
ISEMAU will also directly process and settle card payments as a scheme participant under the Reserve Bank of Australia’s Payment Card Access Regime.
ISEMAU previously announced on the 18th July 2018 that it has been successful in entering into a Mastercard Principal License under the Access Regime1, and also previously announced on the 29th March 2018 its card acquiring agreement with American Express.
Resumption of Trading
As a result of this announcement, the Company will resume trading from the commencement of trading today.
About iSignthis Ltd (ASX: ISX | DE_FRA: TA8)
Australian Securities and Frankfurt Stock Exchange listed iSignthis Ltd (ASX: ISX | FRA: TA8) is the global RegTech leader in remote identity verification, payment authentication with deposit taking, transactional banking and payment processing capability. iSignthis provides an end-to-end on-boarding service for merchants, with a unified payment and identity service via our Paydentity™ and ISXPay® solutions.
By converging payments and identity, iSignthis delivers regulatory compliance to an enhanced customer due diligence standard, offering global reach to any of the world’s 4.2Bn ‘bank verified’ card or account holders, that can be remotely onboarded to regulated merchants in as little as 3 to 5 minutes.
iSignthis Paydentity service is the trusted back office solution for regulated entities, allowing merchants to stay ahead of the regulatory curve, and focus on growing their core business. iSignthis’ subsidiary, iSignthis eMoney Ltd, trades as ISXPay®, and is an EEA authorised eMoney Monetary Financial Institution, offering card acquiring in the EEA, Australia and New Zealand. ISXPay is a principal member of Visa Inc, Mastercard Worldwide and JCB International, an American Express aggregator, and provides merchants with access to payments via alternative methods including SEPA, Poli Payments, Sofort, Trustly, WeChat, AliPay and others.
Probanx Information Systems Ltd (Probanx), a wholly owned subsidiary of iSignthis Ltd, is an international banking software company which has been serving the banking industry since the year 2000 by developing comprehensive banking software solutions to financial institutions around the globe. Probanx offers web-based banking solutions using the latest technology and international standard business rules. Our customers are located on five continents and supported from our technical centres in Europe and Australia.
iSignthis’ Probanx delivers core banking software, including a fully comprehensive and versatile banking solution for retail, corporate and private banks, emoney and payment institutions, offering capabilities that up until now were affordable only by large commercial banks.
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