Wisr’s Debt Reduction Push: Can It Deliver Profitability on Time?
Wisr Limited has successfully completed a $9.4 million institutional placement and launched a $2 million share purchase plan, aiming to reduce debt and accelerate its path to profitability by the second half of fiscal 2026.
- Completed $9.4M placement at $0.031 per share
- Launching $2M non-underwritten Share Purchase Plan for existing shareholders
- Proceeds to repay $7.5M of corporate debt, lowering drawn balance to $27.5M
- Funds to support loan origination growth and product development
- Profitability targeted for H2 FY26
Capital Raise Completed
Australian fintech lender Wisr Limited (ASX – WZR) has successfully closed a $9.4 million institutional placement by issuing over 301 million new shares at 3.1 cents each. This capital injection comes as part of the company’s strategic efforts to strengthen its balance sheet and fuel growth initiatives.
Share Purchase Plan Opens for Existing Investors
In addition to the placement, Wisr is offering a non-underwritten Share Purchase Plan (SPP) to existing eligible shareholders, aiming to raise up to $2 million on the same terms. The SPP opens on November 17 and closes on November 28, providing shareholders an opportunity to participate in the company’s growth trajectory.
Debt Reduction and Growth Focus
The proceeds from both the placement and the SPP will primarily be used to repay $7.5 million of Wisr’s corporate debt facility, reducing the drawn balance from $35 million to $27.5 million. This deleveraging move is expected to improve the company’s financial flexibility. Additional funds will support loan origination growth and ongoing product development, key pillars for Wisr’s competitive positioning in the fintech lending space.
Path to Profitability
Wisr has reiterated its expectation to achieve positive cash net profit after tax (NPAT) in the second half of fiscal year 2026. This timeline signals confidence in the company’s operational improvements and market opportunities, although the path remains contingent on execution and market conditions.
Looking Ahead
While the capital raise and debt reduction mark important milestones, the non-underwritten nature of the SPP introduces some subscription risk. Investors will be watching closely for the uptake of the SPP and how Wisr leverages the fresh capital to accelerate growth and reach profitability.
Bottom Line?
Wisr’s latest capital raise sets the stage for a critical turnaround, but execution risks remain as it targets profitability in H2 FY26.
Questions in the middle?
- Will the non-underwritten SPP reach its $2 million target?
- How will the reduced debt level impact Wisr’s cost of capital and credit profile?
- What specific product developments and loan growth initiatives will drive profitability?
