Why the Wisr (ASX:WZR) share price is edging higher today

Wizr shares have moved higher on the company’s latest news…

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The Wisr Ltd (ASX: WZR) share price is in positive territory during mid-afternoon trade. This comes after the non-bank lender announced an update to its Share Purchase Plan (SPP).

At the time of writing, Wisr shares are swapping hands for 25 cents, up 2.04%.

Wisr completes SPP

Wisr shares are climbing today following the announcement of a successfully completed Share Purchase Plan (SPP).

In a statement to the ASX, Wisr advised it has raised $5 million to accelerate its loan book growth strategy.

The SPP received overwhelming support from eligible shareholders, totalling more than $10 million invalid applications. This is double the size of the tabled offer put towards retail investors.

As a result, Wisr will scale back the applications based on the shareholding balances of applicants at the record date. All eligible applicants, however, will not be guaranteed a minimum quantity of Wisr shares. All valid submissions will be scaled backed proportionally to around 46% of the application value.

In total, roughly 20 million new ordinary shares will be issued under the SPP after rounding and scale back is applied. The offer price was listed as the same price as the placement at 25 cents apiece.

Wisr recently completed a placement to sophisticated and institutional investors, raising $50 million.

The SPP shares are expected to be allotted to investor accounts next Tuesday, 29 June 2021.

Wisr CEO, Anthony Nantes commented:

We would like to thank our shareholders for their ongoing support and endorsement of the Company’s business model and look forward to delivering on the strategic initiatives which are now well- funded.

Wisr share price summary

The Wisr share price has jumped by over 20% since this time last year. The company’s share price has recorded an even better result in 2021, up almost 30%.

Wisr shares reached a multi-year high of 34 cents late last month, before some profit taking occurred.

On valuation grounds, Wisr has a market capitalisation of around $324 million, with approximately 1.3 million shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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