Banxa Holdings Inc., a leading digital financial services company, has successfully raised CAD$3.79 million in a private placement. This funding will be used to repay the company’s debt and support its growth plans. The private placement involved the sale of convertible debenture units and common share purchase warrants.
The second tranche of the non-brokered private placement saw Banxa raise CAD$3.79 million in gross proceeds. The convertible debenture units, known as Note Units, comprise unsecured convertible debentures of the company and 1,897,013 common share purchase warrants. Each warrant allows the holder to purchase one common share at an exercise price of CAD$1.00 for a period of 36 months from the date of issuance. With this latest funding, Banxa has raised a total of CAD$5.54 million across the first and second tranches of its private placement.
The completion of additional tranches is subject to approval from the TSX Venture Exchange (TSXV). The funds raised will primarily be allocated to the repayment of senior secured debt and for general working capital purposes. It is important to note that all securities issued as part of the private placement will be subject to a four-month hold period.
TIGA Trading Pty Ltd (TIGA) was a significant participant in the private placement, contributing CAD$2 million during the second tranche. TIGA funded a portion of this amount by rolling its AUD$2 million debt facility into the Note. Additionally, HB Super Holdings Pty Ltd. participated with CAD$379,699 by rolling its previous debt facility into the private placement.
In recognition of their contributions, Banxa paid a cash finder’s fee of USD$57,000 and will issue USD$28,500 in warrants to Architect Partners.
This announcement highlights Banxa’s commitment to financial stability and expansion amid the rapidly growing digital finance industry. The company’s success in raising funds demonstrates investor confidence and paves the way for further development and innovation in the sector. Banxa’s focus on debt repayment and working capital will ensure a solid foundation for its future endeavors.
Please note that neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the accuracy of this press release.
Forward-Looking Information: This article contains forward-looking information, including expectations, projections, plans, and strategies. Such statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned not to place undue reliance on this forward-looking information, which reflects Banxa’s opinions as of the date of this article. Banxa undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.
