iCash finds backers

A number of high net worth retail investors and also some institutional investors are buying the growth story of automatic teller machine deployer iCash Payments, though the story is proving to be a slippery one.

iCash Payment Systems Ltd yesterday said it raised $4.5 million via a private placement of 90 million shares at five cents a share, and equal to 12 per cent of the issued capital.

The company had cash of $1.9 million at September 2009 and quarterly cash flows statements lodged with the ASX show it is cash flow positive. The new funds will support plans to roll out ATM fleets in New Zealand, China and South Korea, all markets where iCash has indicated in the past it was making progress, though actual revenue gains from these plans so far are small.

A briefing prepared by Shaw Strockbroking and presented to prospective investors earlier this month noted that iCash was "presenting an ATM solution for the country" to Bank of New Zealand last week.

This is 18 months after iCash says its reached agreement with Cashstar, a New Zealand company, to supply 2000 devices, none of which have yet made it to market.

ANZ National, according to iCash, is also a partner in New Zealand.

According to the Shaw briefing for prospective iCash investors the company is "working on three major contracts" in Korea. The firm sources its ATM machines from Korea.

In China the growth prospects are more elusive, though Shaw says the company is "partnering with" Nantian Electronic, a major supplier of devices such as ATMs to the banking industry in China.