Spenda Completes $1.85 Million Institutional Entitlement Offer

Institutional Entitlement Offer Nets $1.85 Million

Spenda Limited (ASX:SPX) has completed the institutional leg of its accelerated renounceable entitlement offer, raising approximately $1.85 million at a deeply discounted price of $0.004 per share. The offer, which grants seven new shares for every share held plus a free attaching option exercisable at $0.006 and expiring in 2031, forms part of a broader $8.545 million capital raise designed to support the company’s turnaround strategy.

The institutional component saw eligible shareholders subscribe for 12.5 million shares, with the remaining 450 million shares sold to new institutional investors and family offices through a shortfall bookbuild managed by Peak Asset Management. These new investors took up the bulk of the raise, underscoring external interest despite Spenda’s recent operational challenges.

Capital Raise Focused on Debt Reduction and Growth Initiatives

Proceeds from the entitlement offer will be strategically deployed to retire $3 million in secured finance debt and reduce $1.65 million in operating liabilities, addressing Spenda’s stretched balance sheet. Additional funds will support restructuring and cost optimisation initiatives ($700,000), product development and delivery ($1.13 million), and bolster general working capital ($1.29 million). This allocation reflects Spenda’s dual focus on stabilising its finances while laying groundwork for organic and acquisitive growth.

The offer price represents a significant discount to recent trading levels, a move aimed at encouraging shareholder participation and attracting new investors amid a challenging market environment for technology firms. Shares are expected to resume trading on an ex-entitlement basis from 10 June 2026, with new shares and options issued by 12 June.

Retail Entitlement Offer Opens Next Week

The retail component of the entitlement offer is scheduled to open on 16 June and aims to raise an additional $6.7 million. Eligible retail shareholders will have the opportunity to subscribe for the same seven-for-one share offer at $0.004 per share, with one free attaching option per share issued. Shareholders unable or unwilling to take up their entitlements will see those shares sold in a retail shortfall bookbuild in early July, with any net proceeds distributed proportionally, though there is no guarantee of value.

This retail phase is critical for Spenda to meet its full capital raising target and unlock the intended financial flexibility. The offer excludes shareholders with registered addresses in the United States, reflecting regulatory compliance considerations.

Spenda’s Strategic Reset Continues

Spenda’s capital raise comes on the back of recent operational moves, including divesting its Ledger platform to reduce costs by $2.7 million annually and a 1-for-20 security consolidation earlier this year. These steps are part of a concerted effort to sharpen focus on core revenue streams and improve profitability. The fresh capital injection is expected to accelerate product development and support the company’s embedded finance and payment solutions across supply chains.

While the institutional raise has secured a solid foundation, the success of the retail entitlement offer will be a key barometer of shareholder confidence in Spenda’s turnaround plan. The company’s ability to execute on its restructuring and growth initiatives with the new funds will be closely watched by investors.