Cash Converters Secures $25M Equity Raise for Major Franchise Acquisition
Cash Converters has completed a $25 million equity raise to fund the acquisition of 29 Australian franchise stores, with EZCORP increasing its voting power to nearly 44%.
- Completed fully underwritten retail entitlement offer raising $9.26 million
- Total equity raising of approximately $25 million including institutional placement
- Funds to acquire 29 franchise stores for $37 million
- EZCORP to increase voting power to 43.85% through sub-underwriting
- Acquisition scheduled to complete on 1 December 2025
Equity Raise Success Amid Strategic Expansion
Cash Converters International Limited (ASX – CCV) has successfully closed the retail component of its accelerated non-renounceable entitlement offer, raising approximately $9.26 million. Combined with the earlier institutional placement and entitlement offer, the company has secured close to $25 million in fresh equity capital. This capital raise is a critical step in Cash Converters’ strategy to expand its footprint in Australia through the acquisition of 29 franchise stores.
The retail entitlement offer saw eligible shareholders take up about 29% of their entitlements, with additional demand met through a Top Up Facility. Despite a shortfall in retail subscriptions, the shortfall shares will be absorbed by EZCORP, the company’s major shareholder, and the lead manager, Bell Potter Securities, ensuring the offer was fully underwritten.
Funding a Major Acquisition
The funds raised will primarily finance the proposed acquisition of the Cash Converters Investment Group, a network of 29 franchise stores across Australia, for $37 million. This acquisition will increase Cash Converters’ corporate store count from 92 to 121, significantly enhancing its presence in key Australian markets, particularly along the East Coast.
CEO Sam Budiselik highlighted that the acquisition is expected to unlock meaningful scale and operational efficiencies, particularly in retail and lending services. The move aligns with the company’s broader growth strategy, focusing on expanding its retail footprint and transforming its loan book towards longer-term, lower-cost lending solutions.
EZCORP’s Growing Influence
EZCORP, Inc., which already holds a substantial stake in Cash Converters, has agreed to sub-underwrite the retail entitlement offer up to approximately $2.18 million. With the shortfall shares allocated to EZCORP, its voting power is expected to rise to around 43.85%, including shares held by its associate MS Argus Pty Ltd. This increase in influence could have implications for corporate governance and strategic decision-making within Cash Converters.
The company noted a slight shortfall against the $25 million minimum raise condition precedent for the acquisition but intends to waive this condition, signaling confidence in completing the transaction by the scheduled date of 1 December 2025.
Looking Ahead
New shares issued under the entitlement offer are expected to be allotted by 24 November 2025 and commence trading on the ASX the following day. The successful completion of this equity raising and acquisition marks a significant milestone for Cash Converters as it seeks to strengthen its market position and deliver on its growth ambitions.
Bottom Line?
With the acquisition imminent and EZCORP’s stake rising, Cash Converters is poised for a transformative phase, but governance dynamics warrant close watch.
Questions in the middle?
- How will EZCORP’s increased voting power influence Cash Converters’ strategic direction?
- What operational efficiencies and revenue growth can be expected post-acquisition?
- Could the slight shortfall in the equity raise signal challenges in future capital raises or investor appetite?
