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
Who is Goldfields Money Limited (ASX:GMY)? We're the little company that could, the plucky regional credit union who grew into a national, straight-talking, digitally savvy alternative to traditional banking in Australia. We are the new approach to traditional financial services, we're honest, with transparent banking practices and a straightforward approach to you and your money. It's all yours, honestly.
We've had some awesome projects come to fruition this year which make managing your money with us simple. We've replaced our core banking system with the latest, state-of-the-art advancements in banking technology. Think of core banking systems as the beating heart of every banking institution. Some core banking systems currently operating out there are now over 30 years old and layered with patches and workarounds as new technology has evolved, such as; online banking, smartphones, and data security. The replacement of our core banking system makes us better than we were before. Better, stronger, faster.
Goldfields Money is also a registered ADI (Authorised Deposit-Taking Institution) just like the 'big 4' banks. See the official looking logo? It means deposits are guaranteed by the Australian Government for up to $250,000 per customer, including business accounts. Your money is safe and secure with us! You can read more about it
From everyday savings and investment accounts, to home loans, personal loans and business accounts, Goldfields Money has uncomplicated banking products to suit your situation, we get you.
We're an Australian Securities Exchange listed financial institution (ASX:GMY) with all the security of a bank. And just like banks, Goldfields Money is regulated by APRA (Australian Prudential Regulation Authority).
Goldfields Money Ltd