Wisr Raises $1.22M in Share Purchase Plan, Cuts Debt by $7.5M
Wisr Limited has successfully closed its Share Purchase Plan, raising $1.22 million and reducing corporate debt by $7.5 million as part of a broader $10.6 million capital raise.
- Raised $1.221 million via Share Purchase Plan at $0.031 per share
- Issued 39.39 million new shares to existing shareholders
- Total capital raised $10.6 million including recent placement
- Reduced corporate debt facility by $7.5 million to $27.5 million
- Funds allocated to working capital, loan growth, and product development
Capital Raise Completion
Wisr Limited (ASX – WZR), the Australian fintech lender, has announced the successful completion of its Share Purchase Plan (SPP), raising $1.221 million through the issuance of over 39 million new shares at a price of 3.1 cents each. This latest capital injection follows a recent placement completed in mid-November, bringing the total funds raised in this round to $10.6 million before costs.
Debt Reduction and Financial Position
The proceeds from this combined capital raise have been strategically deployed to reduce Wisr’s corporate debt facility by $7.5 million, lowering the drawn balance from $35 million to $27.5 million. This move signals a deliberate effort by the company to strengthen its balance sheet and improve financial flexibility amid a competitive fintech lending environment.
Supporting Growth and Innovation
Beyond debt reduction, Wisr plans to use the remaining capital to bolster working capital and liquidity. These funds are earmarked to support loan origination growth and accelerate product development initiatives. The company’s proprietary platform, which integrates digital lending with financial tools aimed at helping Australians manage debt and credit, stands to benefit from these investments.
Shareholder Engagement and Market Implications
The SPP attracted 173 valid applications from eligible shareholders, including participation from all company directors, reflecting confidence in Wisr’s strategic direction. The new shares issued under the plan will rank equally with existing shares and are expected to commence trading shortly, potentially impacting liquidity and shareholder composition.
Looking Ahead
While the capital raise and debt reduction mark positive steps, investors will be watching closely to see how Wisr translates this financial boost into tangible growth in loan origination and product innovation. The fintech sector remains dynamic, and Wisr’s ability to leverage its strengthened financial position will be critical to sustaining momentum.
Bottom Line?
Wisr’s latest capital raise and debt cut set the stage for growth, but execution will be key to delivering shareholder value.
Questions in the middle?
- How quickly will Wisr’s loan origination volumes respond to the new capital?
- What specific product development initiatives will the company prioritize with the fresh funds?
- Will the reduced debt level improve Wisr’s cost of capital and profitability metrics?
