Placing of Ordinary Shares

RNS Number : 1151A

FAIRFX Group PLC

18 December 2014

 



This announcement  and the information contained in it is restricted and is not for release, publication or distribution, directly or indirectly, in whole or in part, in, into or from Australia, Canada, Japan, South Africa, the United States or any other jurisdiction in which the same would be unlawful.

FAIRFX Group plc

("FAIRFX" or "the Company")

Placing of Ordinary Shares

FAIRFX, the international payments provider, is pleased to announce that is has conditionally raised approximately £1.5 million excluding  expenses through the proposed placing of 2,525,382 new ordinary shares ("Placing Shares") at 58 pence per ordinary share ("Placing Price") with existing and new institutional shareholders (the "Placing"). These funds will be used to accelerate the Company's existing strategy for growth by increasing marketing on a targeted basis, both online and offline, incorporating TV, radio, print and social media as well as affiliate marketing.

In the period since IPO the Company has continued to grow, in-line with expectations. The 400,000 retail client level was passed in November and all areas of the business are progressing well. A new version of the www.fairfx.com website has gone live which is designed to convert traffic much more efficiently and thereby improve the cost-effectiveness of increased marketing spend. Further improvements to the website are planned together with new versions of the FAIRFX App being deployed in the near future. In addition, the Company has been expanding its affiliate marketing capabilities and has signed agreements with several new partners, with some potentially large deals currently being negotiated.

The Placing Shares will represent approximately 3.6 per cent. of the Enlarged Share Capital and will, when issued, rank in full for all dividends declared, made or paid after the date of their issue and otherwise pari passu with the existing Ordinary Shares. The Placing Price represents a discount of approximately 4.92 per cent. to the price of 61 pence per Ordinary Share, being the Closing Price of the Company's Ordinary Shares on 17 December 2014.

Cenkos Securities plc has entered into the Placing Agreement with the Company whereby it has agreed to use its reasonable endeavours, as agent for the Company, to procure placees for the Placing Shares. The Placing is conditional on, inter alia, the Placing Agreement becoming or being declared unconditional in all respects and not being terminated before Admission and on Admission of the Placing Shares to the AIM Market of the London Stock Exchange plc ("AIM").

Application has been made to the London Stock Exchange plc for the Placing Shares to be admitted to trading on AIM. It is expected that Admission will become effective and that dealings in the Placing Shares will commence on AIM on 23 December 2014. On Admission, the enlarged share capital of the Company is expected to be 70,276,010 Ordinary Shares.

Ian Strafford-Taylor, Chief Executive of FAIRFX commented, "We are delighted with the outcome of the fundraise which allows us to accelerate our targeted marketing approach and we expect this to continue to push our growth across all areas of the business. Trading continues to be positive as we had expected and we look forward to the future with optimism." 

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Enquiries:

FAIRFX Group plc [phone]

Ian Strafford-Taylor, CEO

Square1 Consulting [phone]

David Bick/Mark Longson

Cenkos Securities plc [phone]

Max Hartley/Callum Davidson

About FAIRFX

FAIRFX is a leading international payment services provider, incorporated in the UK in 2005. The Company has developed a cloud-based peer-to-peer payments platform that enables personal and business customers to make easy, low-cost multi-currency payments in a broad range of currencies and across a range of FX products all via one integrated system. The FAIRFX platform facilitates payments either direct to Bank Accounts or at 30 million merchants and over 1 million ATM's in a broad range of countries globally via Mobile apps, the Internet, SMS, wire transfer and MasterCard/VISA debit cards.

FAIRFX operates within the rapidly growing online multi-currency payments market and provides transactional services to both personal and business customers through four channels being Currency Cards, Physical Currency, FairPay and Dealing. The Currency Card and Physical Currency offerings facilitate multiple overseas payments at points of sale and ATM's whereas the FairPay and Dealing products support wire transfer foreign exchange transactions direct to Bank Accounts.

In addition, FAIRFX has entered into a number of "white-label" arrangements for the use of its P2P matching platform. Customers include easyjet, ThinkMoney and Pitney Bowes. FAIRFX has also partnered with Concur Technologies, Inc. a leading provider of integrated travel and expense management solutions with over 25 million users globally. Such relationships provide strong support for FAIRFX's customer acquisition strategy.

 

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