Butn Secures $20 Million Boost to Accelerate SME Funding Growth

Butn's Strategic Capital Raise

Butn Limited (ASX, BTN), a fintech innovator in SME transactional funding, has announced a significant $20 million funding package aimed at accelerating its growth trajectory. The package comprises a $10 million two-tranche institutional placement priced at $0.10 per share and a non-binding term sheet for a $10 million corporate credit facility with Mighty Partners, a Sydney-based growth credit lender.

The equity placement includes an unconditional first tranche of approximately $7 million and a conditional second tranche of $3 million, which awaits shareholder approval at an upcoming Extraordinary General Meeting. This dual approach reflects Butn’s intent to balance immediate capital needs with prudent governance.

Backing from Institutional and Sophisticated Investors

The placement attracted strong interest from both existing and new institutional investors, signaling confidence in Butn’s business model and growth prospects. The shares are issued at a slight discount to recent trading prices, a common practice to incentivize participation in capital raises. Proceeds will primarily bolster working capital and fund expansion opportunities, underscoring Butn’s commitment to scaling its innovative SME funding solutions.

Unified Capital Partners acted as sole lead manager for the placement, with legal counsel provided by K&L Gates, ensuring a streamlined and compliant process.

Corporate Credit Facility to Complement Equity Raise

Alongside the equity raise, Butn has signed an indicative, non-binding term sheet for a $10 million corporate credit facility with Mighty Partners. This facility offers flexible, non-dilutive capital with a 24-month term and competitive interest terms, including early repayment options without penalties after a 12-month draw period.

Mighty Partners, supported by notable entrepreneurs Larry Diamond and Matt Leibowitz, focuses on financing high-growth technology and software companies, aligning well with Butn’s fintech positioning. The credit facility includes equity options for the lender, reflecting a partnership approach to growth financing.

Looking Ahead, Refinancing and Growth Opportunities

Butn is also finalizing documentation for a new wholesale facility with a global credit financier. This move aims to refinance existing corporate notes and provide additional headroom for future growth initiatives. Together, these funding arrangements position Butn to capitalize on market opportunities and continue innovating in the SME funding space.

While the credit facility remains subject to final documentation and the second tranche of shares requires shareholder approval, the overall funding strategy reflects a proactive approach to strengthening Butn’s financial foundation.