Capital raising

#1

I saw a article in the Australian where Eric say you are raising another $20m in capital and the company is now worth $95m. Does that mean the value of my current shareholding has increased since the crowd funding I participated in ?

Eric also mentions a world first Core Banking Platform - can you tell me more.

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#2

Hey T, Xinja is aiming to raise the new capital. It will be raised on the condition the Restricted ADI licence is granted. If we are successful in raising the new capital then it would be a fair assumption that your shareholding has increased in value. Obviously there is no guarantees of your shareholding value in the future.

On the Core Banking Platform, watch this space. We will be making an announcement about this shortly.

#3

Will existing Investor’s via Equitise be invited to participate in the new $20M Capital funding?

#4

I’m guessing if these guys are raising more funds then your investment in this company would be diluted.

#5

Hi Stacky, not at this stage I don’t believe, the C round will be aimed at larger investors to achieve it as quickly as possible.

#6

Can we get some clarity on this capital raising. Eric was quoted in Australian as company having a 95m valuation after the capital raising. How is this calculated ? How many shred are being issued. What is the impact on existing shareholders ?

#7

Hi SocialXinja, you mention a C round of funds raising for large investors only, this could be a bit disappointing to small slow founding investors to be excluded don’t you think? What is the definition of a “larger investor” and can you tell us when is round C?

#8

Hi T_Armer

We had a really long useful conversation with shareholders around the capital raising during the Extraordinary General Meeting last week.

In addition I will be circulating an email to all shareholders later this week setting out the numbers and info you mention and giving investors that qualify as “sophisticated investors” under the Corps Act the opportunity to invest.

Sadly we are prevented from allowing retail investors to invest this time around, and our wonderful retail shareholders told us at the EGM last week that they are very keen to invest again, so in response we will be offering another Crowd Funding opportunity for retail Investors in the first half of next year.

If you are interested, this article sets out the difference between retail and sophisticated investors and some of the different protections and restrictions that apply to them.

Thanks for the question.

E

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#9

Hey R3,

As a public unlisted company we are prevented by law from raising capital at scale from “retail investors” outside of the full crowdfunding process.

Annoyingly its not practical for us to do a crowdfund every time we need to raise capital…it takes 3 -4 months end to end, is expensive and very time intensive…plus its also capped at $5m a year, much of which we have already used this year.

The retail investors at the EGM last week were really keen to invest again as well, which is wonderful, so i gave them my word we would run another crowdfunding process next year. We will probably aim for April/May time.

That said any existing investors that qualify as “sophisticated investors” under the Act will be very welcome in Series C, regardless of the basis they invested on previously.

If you need the definitions of sophisticated investor take a look at the AFR article I have attached further down the channel.

In addition I will be writing to shareholders this week setting out all the details of the Series C raise.

Thanks for you support and ownership of us, we all really appreciate it.

E

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#10

Hi Burning,

Thats right of course. As a start up company raises money the existing shareholders get diluted.

At Xinja we are very particular in ensuring that everyone has the same type of shares…founders, big investors, crowdfunding investors…everyone. That way all our interests are aligned. If a crowdfunding investor is getting diluted, so am I.

The way I look at it, as a substantial shareholder of Xinja, its better to get diluted so the company can grow…ie the idea that its better to own the tail of an elephant, than the whole of a mouse. :slight_smile:
E

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#11

Thanks for all the answers, @XinjaMaker!

#12

Thanks for that information XinjaMaker, it makes cents :grin:

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#13

Pun of the week goes to R3sumarX :joy: