NZX-listed tech company SmartPay has raised $490,000 through placing 37.5 million shares at $0.013 cents a share with private investors.
The placement is part of a capitalisation and funding programme started late last year, the company says in a statement.
Managing director Ian Bailey says the funds will be used to support SmartPay’s balance sheet, provide funds for potential acquisitions and "maintain the strong ongoing position of the Company despite the current market conditions".
“Whilst all indications are positive for ongoing cashflow positive and future profitability, we continue to operate in a very tight environment. Moreover with the recent restructuring completed, SmartPay’s operational performance is now better than ever,” Bailey says.
SmartPay recently announced that it was cashflow positive at operating level, and had undertaken an acquisition of All Talk Communications as part of a strategy to increase its customer base. The All Talk buy was completed using existing cash.
SmartPay’s products include: telecommunications products and services including voice over IP, broadband, Eftpos terminals and secure Eftpos internet connectivity. It also provides audio and video, music, messaging and media via its Retail Radio products and prepayment products and transactional processing services to the local taxi industry.