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
Who is Goldfields Money Limited (ASX:GMY)? We're the little bank 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 banking in Australia, we're honest, with transparent bank 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.
We are listed on the ASX (ASX:GMY) and regulated by APRA. See the official looking logo below? It means depositors enjoy the same protection as the big banks with deposits guaranteed by the Australian Government for up to $250,000 per customer (including business accounts). You can read more about us at www.goldfieldsmoney.com.au
From everyday savings and investment accounts, business accounts, personal loans or home loans Goldfields Money offers uncomplicated banking products to suit your situation. We get you.
Goldfields Money Ltd