The SelfWealth Ltd (ASX: SWF) share price is climbing on Friday following an update on the second part of its capital raise.
At one stage during intraday trade the online brokerage company's shares were up 4% to 39 cents. However, at the time of writing they have partially retreated to 38 cents — still a gain of 1.33% on yesterday's closing price.
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SelfWealth commences Share Purchase Plan
Investors appear to be bargain hunting after the SelfWealth share price hit a 52-week low yesterday.
According to its release, SelfWealth has opened its Share Purchase Plan (SPP) to all eligible shareholders. This comes after the company completed a $10 million placement last week.
The SPP is aiming to raise an additional $2 million by the issue of new fully paid ordinary shares.
SelfWealth noted a minimum of $2,500 up to a maximum of $30,000 worth of shares can be applied for. However, it may accept oversubscriptions or scale back applications at its discretion based on the result of the SPP.
The shares will be issued at the lower of the issue price (39 cents per share), or a 2.5% discount to the volume-weighted average price (VWAP) over the 5 trading days to 14 July 2021.
Proceeds of the SPP, combined with the monies received from the placement, will be used to accelerate SelfWealth's growth strategy.
This includes expanding product offerings as well as investing in user experience and high-demand features. The company is also seeking to implement a robust data and analytics strategy, and increase headcount to support mobilisation.
Settlement of the shares from the SPP is expected to happen on 12 August 2021.
About the SelfWealth share price
Over the last 12 months, SelfWealth shares have continued their descent to hit a 52-week low of 37.5 cents yesterday. This amounts to a sizeable loss of around 25%, with 2021 falling more than 30%.
Based on today's price, SelfWealth commands a market capitalisation of roughly $87 million, with approximately 227 million shares outstanding.
