Australian fintech Registry Direct (ASX: RD1) has completed a $1.4 million share placement designed to increase client platform acquisitions and bring in more revenue.
The heavily-supported capital raising saw the company issue approximately 52.3 million fully-paid ordinary shares at $0.027 each – representing a 15.9% discount to the 30-day volume weighted average price.
Following completion of the placement, Registry Direct will have approximately $2.7 million in cash on hand (before offer costs).
Funds will be used to increase revenue from the company’s service business; grow client platform acquisitions through its development team; expand the range of businesses it can service; and integrate its business into other platforms to increase the ease of adoption and market awareness of its services.
Share registry services
Registry Direct provides share and unit registry services to listed and unlisted entities, Australian trusts, fund managers and product issuers.
It operates within an addressable market of 2.93 million Australian companies and has a client list which includes Facebook, Tesla, Siemens, Starbucks, Sequoia Financial Group, Adobe and Canva.
Registry Direct has created and developed the country’s only fully-featured software-as-a-service (SaaS) registry management platform, designed to better handle shareholder data and communications.
“Our vision is to create a connection between businesses, investors, and employees, by bringing ownership to life,” the company said.
“In doing so, we aim to inspire more entrepreneurs to start companies, encourage more people to invest in businesses, and incentivise employers and employees to work together.”
Fraction of the cost
The company offers its SaaS platform to unlisted companies at a fraction of the cost of traditional services.
“Unlisted companies can use our software on a self-service basis which typically reduces their registry costs relative to traditional full-service offerings, while gaining the benefits of an enterprise-grade registry system,” it said.
“[We believe] this self-service capability is what distinguishes us from traditional registry service providers in Australia.”