The MoneyMe Ltd (ASX: MME) share price is on ice today following a company-requested trading halt on Tuesday.
Aside from this, the company also posted its FY22 full-year results before the open today as well.
The MoneyMe share price is resting at 69 cents, down more than 68% this year to date.
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Why is the MoneyMe share price halted?
The company notes it requested the trading halt of its securities for a planned equity raise.
It is undertaking a fully underwritten placement to raise $20 million. To do this, it will issue 40 million new fully-paid ordinary shares.
MoneyMe will issue the placement shares at a fixed price of 50 cents apiece, representing a 28.1% discount to the last close price on Monday – just before the halt.
Specifically, it hopes to raise approximately $17.84 million through the issue of approximately 35.7 million shares in an unconditional offer.
Then, it wants to raise the additional $2.16 million through a conditional placement that will require shareholder approval.
"The proceeds from the equity raising will be utilised for equity subordination requirements in MoneyMe's warehouse facilities to support continued loan book growth, and payment of associated upfront commissions to brokers," the company said.
"In its normal course of business, MoneyMe will continue to explore opportunities to expand new and existing debt capital facilities to support its balance sheet and loan receivables growth," it added.
The MoneyMe share price is expected to remain in a trading halt until Thursday, whilst the equity raise is being completed.
MoneyMe shares remain down more than 66% in the past 12 months of trade.
