Perth-based fintech Spenda Limited (ASX: SPX) has launched an accelerated pro-rata renounceable entitlement offer to raise up to $8.545 million, pricing the offering at a steep discount to its last closing price.
The shares are priced at 0.4c each, or 76.47 per cent less than the company's last closing price of 1.7c each on 28 May 2026.
The heavily discounted raise is structured as a seven-for-one offer, meaning eligible shareholders can acquire seven new shares for every one held on the record date.
If fully subscribed, the offer will result in the issuance of 2.136 billion new shares, or seven times the current 305.2 million shares on issue.
The bulk of the funds will be directed toward balance sheet repair.
Of the $8.545 million target, $3 million will be used to retire secured finance debt and $1.65 million to reduce operating liabilities, together accounting for more than half the total raise.
A further $1.13 million is earmarked for product development, $700,000 for restructuring and cost optimisation, $1.29 million for general working capital, and $780,000 to cover the costs of the offer itself.
Spenda is an integrated business platform that delivers infrastructure to streamline business payment processes.
"The entitlement offer forms part of the company's turnaround strategy to optimise existing business processes and to set the base for future organic and acquisitive growth initiatives," says the company.
"In particular, the entitlement offer is being undertaken to recapitalise the company with funds to meet its working capital requirements, support product development and delivery; provide flexibility for further operational restructure and cost optimisation initiatives; and materially reduce the company's debt position by raising capital to repay finance debt and reduce other operating liabilities."
The entitlement offer comes on the heels of a series of restructuring moves by Spenda in recent months.
In March 2026 the company completed a $1.4 million private placement at 0.2c per share, and in May 2026 it divested its Spenda Ledger platform to APG Pay for $1.8 million as part of a broader simplification strategy.
Executive chairman Karim Razak said at the time of the divestment that the company had "simplified the business, reduced costs, and shifted our focus toward products that are already generating revenue and showing growth".
Spenda's most recent half-year results, for the six months to 31 December 2025, showed revenue of $4.19 million, down 15 per cent on the prior corresponding period, alongside a net loss of $6.04 million and cash reserves of $1.5 million.
The company operates a suite of payment and business automation products targeting small and medium enterprises.
Its remaining product lines following the Ledger divestment are focused on payment processing and supply chain finance solutions.
Peak Asset Management has been appointed lead manager for the latest raise and will receive a 6 per cent fee on funds raised.
If more than $8 million is raised, Peak is also entitled to receive up to 250 million shares and 500 million broker options, subject to shareholder approval.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support