Debt Reduction Drive: My Rewards’ $4.12M Capital Raise Could Dilute Shareholders
My Rewards International Limited (ASX – MRI) has announced a pro rata non-renounceable entitlement offer aiming to raise up to $4.12 million, primarily to reduce debt and strengthen working capital. The offer is partially underwritten and open to shareholders in select countries, with key dates set for September and October 2025.
- Pro rata non-renounceable entitlement offer to raise approximately $4.12 million
- Offer price set at $0.009 per share with one new share for every two held
- Partially underwritten up to $3.4 million by three underwriters
- Proceeds allocated mainly to debt reduction, working capital, and marketing
- Offer open to eligible shareholders in Australia, New Zealand, UAE, Thailand, Bermuda, Indonesia, and Hong Kong
Entitlement Offer Overview
My Rewards International Limited (ASX, MRI), a global player in loyalty technology and digital marketing services, has launched a pro rata non-renounceable entitlement offer to raise up to approximately $4.12 million before costs. The offer allows eligible shareholders to subscribe for one new fully paid ordinary share for every two shares they currently hold, at an issue price of $0.009 per share.
The offer is partially underwritten up to $3.4 million by a consortium comprising Abreco Enterprises Pty Ltd, Nightfall Limited, and Alexander Gold as trustee for the Klevo Trust. This underwriting provides a degree of certainty around the capital raise, though the final amount raised will depend on shareholder participation.
Use of Proceeds and Strategic Intent
The company intends to deploy the funds primarily to reduce existing debt, which accounts for 74% of the planned use of proceeds. This focus on deleveraging signals a strategic move to strengthen the balance sheet and improve financial flexibility. Additionally, 24% of the funds will support working capital and administration costs, while a smaller portion is earmarked for marketing initiatives and offer expenses.
My Rewards International’s decision to prioritize debt reduction aligns with broader industry trends where technology companies seek to optimize their capital structures amid evolving market conditions. The company’s ability to execute this plan will be closely watched by investors, given the potential impact on future operational stability and growth prospects.
Offer Details and Timetable
The entitlement offer is open to shareholders with registered addresses in Australia, New Zealand, the United Arab Emirates, Thailand, Bermuda, Indonesia, and Hong Kong. The record date for determining entitlements is 17 September 2025, with the offer opening on 22 September and closing on 1 October 2025. Shares issued under the offer will rank equally with existing shares and are non-renounceable, meaning shareholders cannot trade or transfer their entitlements.
The company has reserved the right to extend the closing date or modify the timetable, reflecting a flexible approach to managing the offer in response to market conditions. The new shares are expected to commence trading on the ASX on 6 October 2025.
Market and Investor Implications
This capital raising initiative comes at a critical juncture for My Rewards International as it seeks to balance growth ambitions with financial prudence. The partial underwriting mitigates some risk of undersubscription, but the non-renounceable nature of the offer limits shareholder flexibility, which could influence participation rates.
Investors will be keen to monitor the uptake of the entitlement offer and subsequent impact on the company’s share price and liquidity. The successful reduction of debt could enhance investor confidence and provide a platform for future strategic initiatives, including potential expansion of the company’s loyalty and digital marketing solutions.
Bottom Line?
My Rewards International’s capital raise marks a pivotal step toward financial consolidation, setting the stage for its next growth phase.
Questions in the middle?
- Will shareholder uptake meet the underwriting threshold to fully fund the offer?
- How will the debt reduction impact the company’s cost of capital and credit profile?
- What marketing initiatives will be prioritized with the allocated funds to drive growth?
