iSignthis, a payment and identity verification technology company, announced on Monday that it has raised AU$10 million ($7.2 million) before costs from securing placement of 68,965,517 ordinary shares. The shares were bought by a number of wholesale and sophisticated investors at a price of AU$0.145 per share.
The securities are expected to be issued on Monday, October 8, 2018. Petra Capital and Merchant Corporate Advisory jointly led the placement. The new shares will rank equally with the existing fully paid ordinary shares in iSignthis.
iSignthis Aims to Perform Certain Banking Functions Like PayPal
Recently, the firm applied to perform certain aspects of banking as a Provider of a Purchased Payment Facility (PPF Provider) from the Australian Prudential Regulation Authority (APRA) for its subsidiary iSignthis eMoney (AU) Pty Ltd (“ISEMAU”). Its license is still currently under review by the regulator.
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According to the statement released by the company, it will use the capital to satisfy the minimum Tier 1 capital requirements to secure the license as a PPF Provider. A PPF Provider is a special class of an Authorized Deposit-taking Institution (ADI), an institution that is allowed to perform a limited range of banking activities.
iSignthis expects the conditions for the license to be similar to what was expected of Paypal Australia Pty Limited, which is currently the only PPF Provider ADI licensed by APRA. However, the company states that its application may be subject to other conditions.
As part of the license, ISEMAU will directly process and settle card payments as a scheme participant under the Reserve Bank of Australia’s Payment Card Access Regime.
Recently, iSignthis has been expanding its reach not only in Australia – but across the world. In September, Finance Magnates reported that is has signed an agreement with Prasos – a cryptocurrency service provider in Finland. As per the agreement, Prasos will use iSignthis’ PaydentityTM to process payments and for identity verification services.