Capital Raising and Finsure Transaction Update
The proposed merger with Finsure involves the acquisition by Goldfields Money of 100% of the diluted shares in Finsure via the issue of Goldfields Money shares.
Goldfields Money proposes to issue 40,750,000 fully paid ordinary shares to Finsure shareholders based on an agreed issue price of $1.50 per share valuing Finsure at ~$61 million and the merged group at ~$98 million
Finsure co-founder and CEO, John Kolenda, has joined the Goldfields Money Board at the invitation of the existing Board
The proposed merger is subject to satisfaction (or waiver, if applicable) of the remaining conditions:
- Obtaining all necessary regulatory approvals (including FSSA approval from the Federal Treasurer)
- Obtaining all necessary Goldfields Money shareholder approvals
- ASX approving the quotation of Goldfields Money shares issued as consideration
- No Goldfields Money or Finsurematerial adverse effect or "prescribed event"
OPPORTUNITY TO VOTE
- Goldfields Money shareholders will be given the opportunity to vote on the proposed merger with Finsure, which will be subject to a simple majority vote (i.e. >50%)
Dispatch Notice of Meeting: May 2018
Shareholder meeting: June 2018
Completion: June 2018
DIVERSIFIED REVENUE STREAMS
- Access to diversified revenue streams including aggregation, wholesale product offerings, broker subscription fees
- Broader geographical exposure including an established east coast presence
INCREASED LOAN VOLUMES
- Access to increased loan volumes by joining Finsure's panel of lenders, and the potential opportunity to fund part of the wholesale and white-label businesses
LOWER COST FUNDING
- Access to lower cost funding via Finsure's distribution channels for deposit products including term deposits and transaction accounts
ACHIEVE NEW MARKET STATUS
- Ability to fast-track Goldfield Money's aim of becoming a diversified financial services business with banking status by leveraging complimentary services and increasing scale
- Whilst the intention is to keep the Goldfields Money and Finsure businesses operationally separate, there are a number of opportunities to rationalise functions that are duplicated including back-office support and credit assessment
To view the full presentation, 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