Online payment solutions provider QuickFee Ltd [ASX:QFE] recently announced the successful completion of a $15 million capital raise.
The company was able to raise the funds through an institutional placement offer. The announcement saw the QFE share price hold steady to trade at $0.605 at the time of writing.
What’s happening at QuickFee?
With the company being placed on the All Ords just over 12 months ago, it’s been an interesting start to life in the market.
With the onset of the COVID-19 virus, QuickFee saw its stock plummet down into the March low before rebounding strongly.
Throughout the pandemic, with businesses relying more and more on ‘buy now, pay later’ credit facilities, the company was able to record some encouraging figures:
- Australian lending reached AU$49.3 million, up 17% on FY19
- US lending reached US$13.0 million, up 63%
- US transaction volumes rose substantially, increasing 137% to US$305 million
The company said COVID-19 has accelerated the shift to online payments.
And now the company has completed a $15 million capital raise. CEO Bruce Coombes said:
‘The strong support QuickFee received from both existing shareholders and new shareholders is very pleasing.
‘The funds from the Placement will allow us to add significant scale to our team for customer acquisitions, predominantly in the US, and funding for the anticipated growth of the receivables book following the launch of the interest free product.’
Where to from here for QuickFee?
Unfortunately, all of this good news hasn’t exactly translated into a boost in the stock — which continues to slide backwards.
With the share price sitting slightly above the support level of $0.59, if it were to fall through this then the level of $0.49 may be strong enough to halt a further fall.
Should the share price turn back to the upside, then the levels of $0.68 and $0.77 may provide future resistance.
For Money Morning Australia
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