Why has Capricorn Invested $7 Million into Spenda Through a Share Placement?

Capricorn's Strategic Investment in Spenda: A New Era for Payment Solutions

January 29, 2024 – In a landmark move in the fintech industry, Capricorn Society Ltd has invested $7. 175 million in Spenda Limited, an emerging leader in electronic payment solutions, signaling a significant shift in the supply chain and trading network payments landscape. This investment, announced today, represents a cornerstone in Spenda's growth strategy, heralding a new chapter in its journey towards revolutionizing payment systems across various sectors.

A Bold Move: Capricorn's Cornerstone Investment

After a thorough due diligence process, Capricorn, a member-based organization deeply rooted in the automotive industry, has confidently injected $7. 175 million into Spenda through a private placement. This move not only infuses substantial capital into Spenda but also marks Capricorn's ownership of 13. 75% of Spenda's issued share capital.

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Strategic Share Issuance

In this strategic financial maneuver, Spenda will issue 592,975,206 shares at a price of $0. 0121 per share. This pricing strategy is noteworthy, representing a discount of approximately 9. 97% to the 15-day VWAP and about 7. 7% to the 30-day VWAP. The significance of this pricing lies in its attractive valuation, aiming to generate investor interest while acknowledging current market conditions.

Spenda's Growth Trajectory: Empowering the Digital Transition in the Automotive Industry

Spenda's collaboration with Capricorn isn't new. A 10-year Master Services and License Agreement (MSLA) was previously signed, underpinning the digital transformation in the automotive sector. This partnership has paved the way for numerous joint initiatives, promising to usher in an era of digital advancement in the industry.

Revenue Expectations and Software Rollout

Spenda's financial outlook is optimistic. The company anticipates generating at least $2 million in revenue from software and services in 2024 alone. With its software set to be implemented across Capricorn's extensive network of 26,000 members, Spenda is poised for a significant leap in monthly software revenues, surpassing the minimum expectation of $100k.

The Impact of the Investment: Financial and Operational Implications

The capital raised from this placement is earmarked for product development and general working capital, hinting at Spenda's commitment to innovation and sustainable growth. Interestingly, the placement process was conducted without a broker or lead manager, and no capital raising fees were incurred, underscoring Spenda's efficient capital management.

Corporate Governance and Future Collaborations

Upon completion of the placement, Capricorn will gain the right to nominate a director to the Spenda Board. Furthermore, Spenda will endeavor to involve Capricorn in future securities issues, ensuring alignment of interests. Capricorn also acquires matching rights in certain change of control proposals, indicating a deepening strategic alliance.

Reimagining Payment Solutions: Spenda's Unique Offering

Spenda stands out with its unique payments solution tailored for closed loop and decentralized marketplaces. Its three-component system encompassing Software, Payments, and Lending, facilitates end-to-end e-invoicing integration, rapid ordering, digital trust, and automated reconciliation. This holistic approach positions Spenda as a vanguard in transforming industry-standard operating environments.

Enabling Efficient Data Transfer and Customized Financing

Spenda's technological prowess enables the seamless transfer of data across various software systems. This capability, combined with its deep understanding of payment flows, allows Spenda to offer bespoke financing solutions aimed at enhancing working capital efficiency and cash utilization for its clients.

As Spenda and Capricorn strengthen their collaboration, the future looks promising for both entities. This investment, built on a foundation of long-standing partnership and mutual trust, sets the stage for numerous innovative endeavors in the years to come. With a solid financial base and strategic support from Capricorn, Spenda is well-positioned to make significant strides in the fintech arena, reshaping how businesses manage payments and finance in the supply chain and trading networks.

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