DirectMoney suitor faces an uncertain future

Basper Ltd, the ASX-listed company that has announced plans to acquire the lender DirectMoney, has issued a half-year financial report that has been qualified by the company's auditor.

Basper (formerly Berklee Ltd) was in the automotive parts industry until it sold its business late in 2013. Last year shareholders voted against a proposal to wind up the company and authorised the board to look for a new business.

Last month Basper said it would raise funds to acquire DirectMoney, which has a A$6 million loan book.

DirectMoney has been operating since October last year. It uses a "marketplace lending" model, which means it raises money from investors to lend. Its average loan size is $15,000 and it offers three-to-five year terms on personal loans.

According to the audit report accompanying the financial report issued last week, Basper had a net asset deficiency of $17,000 at the end of December.

The company's net cash outflow from operating activities during the December half was $184,533.

The auditor said that in the event the capital raising and DirectMoney acquisition did not proceed, Basper would be "reliant upon the financial support of stakeholders."

"These conditions indicate there is a material uncertainty which may cast significant doubt over the ability of the company to continue as a going concern and therefore the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business," the auditor said.

On March 24 Basper announced that it had entered into a binding share sale agreement under which it would acquire 100 per cent of the issued share capital of DirectMoney.

The acquisition is subject to several conditions, including the successful issue of shares to raise a minimum of $5 million and up to $10 million.

Basper said it would lodge a prospectus outlining its capital raising proposal with the Australian Securities and Investments Commission by April 17 and expected to dispatch a notice of meeting to shareholders by April 28, with the meeting scheduled for late May.