My Rewards Reports $311K Operating Cash Burn, $15M Financing Facility Undrawn

Strategic Acquisition Bolsters Loyalty Solutions

My Rewards International Limited (ASX: MRI) has taken a significant step forward in its growth strategy by completing the acquisition of Fly Wallet Pty Ltd, an Australian Financial Services License holder and Mastercard Principal Member. Fly Wallet specialises in white-label loyalty and rewards wallet programs, offering multicurrency, secure card and wallet solutions tailored for global loyalty initiatives. This acquisition enhances My Rewards’ ability to deliver innovative salary-based rewards cards and travel benefits programs for employees, as well as bespoke customer loyalty solutions for corporate clients.

Financial Position Strengthened with Put Option Facility

During the quarter ending 31 March 2025, My Rewards secured additional investment from sophisticated investors, notably entering into a $15 million put option facility with LDA Capital Limited. This facility, which remains undrawn, provides the company with a flexible funding source over a 36-month term, expiring in February 2026. The arrangement includes the issuance of unlisted options to LDA Capital as part of the agreement, aligning incentives for future capital raises. The facility’s availability significantly bolsters My Rewards’ liquidity, with estimated funding sufficient to support operations for over 48 quarters at current cash burn rates.

Advancing Compliance and Reporting Obligations

My Rewards has made notable progress in meeting its financial reporting obligations, lodging its Interim Financial Reports for the half-years ended 31 December 2023 and 2024, as well as its Annual Report for the year ended 30 June 2024. These filings address prior audit disclaimers that contributed to the ASX’s suspension of the company’s securities from quotation since October 2023. The company is now finalising its submission to the ASX to lift the suspension, signaling a potential return to active trading pending regulatory approval.

Operational Cash Flow and Funding Outlook

The quarterly cash flow report reveals a net cash outflow from operating activities of $311,000, reflecting ongoing investment in product development and corporate costs. Despite this, the company’s cash and cash equivalents stood at a negative $52,000 at quarter-end, offset by the substantial undrawn financing facility. Payments to related parties were limited to directors’ fees and remuneration on normal commercial terms, with no other related party transactions reported. The financial runway afforded by the put option facility provides a buffer as My Rewards continues to execute its growth initiatives.

Looking Ahead

My Rewards International is positioning itself as a key player in the customer engagement and loyalty technology sector, leveraging the Fly Wallet acquisition to expand its product suite and market reach. The company’s ability to secure substantial funding and address ASX compliance issues marks a turning point after a challenging period. However, the timing and certainty of resuming ASX quotation remain critical factors for investors to watch closely.