SelfWealth completes shares placement
SelfWealth has announced the completion of a share placement which raised $1.5 million (at a $0.07 a share) from institutional shareholders and sophisticated private investors.
The company also announced it has signed a new product development agreement it has signed with ETF Securities Australia, with plans to launch a new type of exchange trade fund (ETF) in Q1 2019 called the “SMSF Leaders ETF”.
The funds raised from the placement would be invested in new technology, resourcing for the client services and sales team, and support the marketing of both the forthcoming fund and SelfWealth’s existing flat-fee online share-trading platform.
ETF Securities would act as the responsible entity (RE) for the new ETF and the project would be expected to be backed by its parent company, ETFS Capital, which would provide $100 million of seed investment for the new fund.
SelfWealth’s managing director, Andrew Ward, said he expected that the successful launch of the ETF would establish additional component of the company’s annuity revenue stream.
“Within the first year of its launch, the ETF could potentially comprise 20 per cent of our total revenue,” he said.
The new share placement would see in the issue of 20.5million of new shares, with 7.6 million being issued under its 15 percent placement capacity and 12.9 million shares under its 10 per cent capacity, the firm said.
AUTHOR
Oksana Patron
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