Pushpay seeks at least US$30 mln through investment bank   30 Jun 2016

Thursday 30 June 2016 10:57 AM

Pushpay seeks at least US$30 mln through San Francisco-based investment bank

By Sophie Boot

June 30 (BusinessDesk) - Pushpay Holdings, whose mobile payment app allows churches to raise money from parishioners, wants to raise at least US$30 million from investors in the US where it is targeting growth.

The company has engaged an unnamed "middle-market investment bank headquartered in San Francisco" to raise at least US$30 million in primary capital, it said in a statement to the NZX. Pushpay chose the bank because of its "considerable experience in the USA technology sector," it said.

Pushpay also renewed and expanded a standby funding facility from director Chris Huljich's Christopher & Banks, which owns 23 percent of the software developer. The $4 million facility was due to expire today, has been lifted to $10 million and is due June 30, 2017.

“Pushpay continues to grow at a rapid pace in the USA faith sector as we execute on our growth strategy," chief executive Chris Heaslip said. “This is a very exciting time for Pushpay as we increase our presence in the USA faith sector, with the strong support and confidence of both a premier San Francisco-headquartered investment bank and our cornerstone shareholders.”

The company provides mobile commerce tools that help make payments between consumers and merchants easier and is geared to mobile charitable giving. The app has gained traction in the US faith sector, where its services are used by more than 1 percent of the estimated 314,000 churches with an average 500 attendees each. The company has turned its focus to larger merchants, who have the resources to implement the service more widely, and now counts four of the largest 10 churches in the US as customers.

Pushpay's board said last week that it might want to appoint up to two directors based in the US to broaden its skill set, and wants to increase remuneration for non-executive directors so it could retain and attract directors "of the highest calibre" including in the US.

In May, the company widened its annual loss to $19.4 million and reiterated its forecast to break even in 2017. At the time, it had $16.2 million of cash and available funding lines at its March 31 balance date, up from $4.3 million a year earlier.

The shares last traded at $2.06, and have gained 18 percent this year.

(BusinessDesk)

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