Stargroup scrambles toward banking terrain
A last ditch equity capital raising by Stargroup Ltd will enable the ASX-listed ATM operator to settle a long delayed purchase of the automatic teller machine network of Indue, a specialist payments provider.Stargroup on Friday placed a trading halt on its shares in a bid to drum up equity capital to replace the loan capital previously outlined to the market as the source of funding for the Indue ATM acquisition.An offer document circulated to eligible investors spelled out Stargroup's plans to sell A$3.3 million in new shares via a private institutional and sophisticated placement at 2.8 cents per share, together with an ASX listed option exercisable at 5.0 cents on or before 30 November 2018.Stargroup set out the value of the news shares at 1.8 cents, or around a 40 per cent discount to the last trade price of 3.0 cents.Todd Zani, Stargroup chairman, yesterday said the capital raising was "oversubscribed".Selling points in Stargroup's offer document set out a couple of new business objectives, including the "'launch of Stargroup debit and credit cards" from July alongside a "Star branded bank account and other banking products."The banking partner for this pair of initiatives will be Goldfields Money (the same ADI that is the new financier of the cash "bailment" facility for Stargroup).