QuickFee (ASX:QFE) share price lower after capital raising to support Splitit partnership

The QuickFee Ltd (ASX:QFE) share price is tumbling lower on Friday after completing its capital raising to support its Splitit Ltd (ASX:SPT) deal…
The post QuickFee (ASX:QFE) share price lower after capital raising to support Splitit partnership appeared first on Motley Fool Australia. –

the words buy now pay later on digital screen, afterpay share price

The QuickFee Ltd (ASX: QFE) share price is tumbling lower on Friday after returning from its trading halt.

At the time of writing the professional services payment and lending solutions provider’s shares are down almost 5% to 61 cents.

Why was the QuickFee share price in a trading halt?

QuickFee requested a trading halt on Thursday whilst it undertook a $17.5 million capital raising.

This morning its shares returned to action after successfully completing the institutional component of the capital raising.

QuickFee raised $15 million via a placement of shares to institutional investors at a 9.4% discount of 58 cents per new share.

Management advised that the placement was strongly supported by new and existing institutional, family office, and sophisticated investors.

It will now push ahead with its share purchase plan, which aims to raise a further $2.5 million. These funds will be raised at the lower of the placement price or a 5% discount to the five-day volume weighted average price of its shares on 12 October.

Why is QuickFee raising funds?

QuickFee launched the capital raising after announcing a partnership with buy now pay later provider Splitit Ltd (ASX: SPT).

This agreement will allow the clients of accounting and law firms in the United States and Australia to pay their fees on credit card using Splitit’s instalment solution.

The CEO of QuickFee, Bruce Coombes, believes the partnership will open the door to parts of the market it would not normally service.

He said: “We are hugely excited by the new partnership with Splitit. Having already achieved strong acceptance amongst professional services firms with our online payment portal and existing lending solutions, this new interest free product allows QuickFee to capture a significantly greater share of the professional services market by providing payment plans to clients of smaller firms, by far the largest part of the market, that we would not normally service.”

Commenting on the capital raising, Mr Coombes said he was very pleased with “the strong support QuickFee received from both existing shareholders and new shareholders.” 

He believes this is “a strong endorsement of the significant opportunity for the new interest free product being launched in partnership with Splitit.”

“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,” he concluded.

These stocks could rocket in a Post-COVID world (FREE STOCK REPORT)

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post QuickFee (ASX:QFE) share price lower after capital raising to support Splitit partnership appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!