Australian financial services provider, Moneytech, has expanded its business into the US market after completing a merger with Source Financial and establishing a share exchange agreement.
Moneytech will fit in as a subsidiary of Source, sitting alongside Wiki Technologies, which has a mobile and online money transfer and payment service called WikiPay.
Wellington Shields and Co. LLC acted as financial advisor for the merger and is responsible for a subsequent capital raising for the company later this year. The merger was completed on June 30.
The company is now preparing for a New York Stock Exchange MKT application and listing.
Moneytech managing director, Hugh Evans, stated three major reasons for doing this was to increase its shareholder base and introduce some liquidity into its share price; grow its ability to raise money in the US in order to take its business model there; and it also aims to raise about $20 million in equity to expand the business.
“The Australian market place alone in what we’re doing, is about a $62 billion a year market and its growing at 20 per cent per annum,” Evans said. “When we take our model into the American market, all indications are that it’s going to erupt and it will be well accepted.”
Source plans on immediately engaging in the up listing process, however, its shares will continue to trade on the OTCQB market under the current ‘SCRF’ ticker until further notice.
Moneytech funded more than $200 million in loans in 2012 and is forecasting $280 million and $420 million in funding in 2013 and 2014 respectively.
Moneytech currently services more than 5000 business customers in Australia.
It has four main product offerings including Credit Express, which is a trade finance facility for SMEs of $25,000 to $1 million; Confirmed Capital that offers 100 per cent accounts receivables funding for SMEs of up to $5 million; wholesale gift and prepaid debit card offerings called Card Solutions; and Foreign Exchange that offers spot transactions, forward cover, derivatives and options.