15 May 2010

SmartPay launches share purchase plan

9:46 am on 15 May 2010

Eftpos company SmartPay says it is undertaking a capital-raising to reduce debt.

The company has released a Share Purchase Plan, allowing shareholders to buy up to 15,000 new shares at 3.3356 cents a share - the same price at which shares were recently issued under a private placement.

SmartPay managing director Ian Bailey says the company has grown significantly and has been funded mainly by debt, with a small amount of new equity.

He says the company needs to address its debt to equity ratio, in order to access more conventional funding lines from banks and move away from high priced mezzanine debt.