SYDNEY: Credit Intelligence Limited (CI1) has signed a funding agreement with Clee Capital Pty Limited, a news release said.
Clee Capital Pty Limited has raised $1.35 million via the issue of 1.35 million convertible notes to professional and sophisticated investors at a price of S1 per note. The Notes are convertible into ordinary shares at 3 cents per share within six months of issue date.
Shares to be issued on conversion will be equal to the value of the note being converted divided by $0.03. The Notes will have an interest rate of 6% and are unsecured.
The funds raised will be used to provide funds to ICS Funding Pte Ltd and Hup Hoe Credit Pte Ltd to further grow these businesses.
Both businesses exceeded their profit guarantees after acquisition and have significant potential.
Clee Capital Pty Ltd will be entitled to a management fee of 2% and a 4% capital raising fee on the funds raised above, and has entered into a further agreement with the Company to provide corporate advisory services.
Credit Intelligence Managing Director, Jimmie Wong said: “We look forward to working with Clee Capital as we continue to grow and develop the CI1 business in Asia Pacific and globally.”
Credit Intelligence Limited (ASX:CI1) is one of the leading diversified debt-restructuring and personal insolvency management services operating in Hong Kong in the credit funding sector.
Credit Intelligence’s main business includes the provision of bankruptcy admission services and Individual Voluntary Arrangement (IVA) proposal consultancy and implementation services. CI1 acquired 60% of two profitable Singapore based finance companies, ICS Funding Pte Limited (ICS) and Hup Hoe Credit Pte Limited (HHC) on 28 June 2019 and 30 September 2019 respectively.
Both acquisitions are profit accretive to the group results for the financial year ended 30 June 2020.On 1 July 2020 CI1 acquired a 60% interest in Chapter Two Holdings Pty Ltd a Sydney based debt solutions business providing debt negotiation and mortgage broking services to individuals who are experiencing financial hardship.
Credit Intelligence acts for all the leading banks and financial institutions in Hong Kong with regular referrals from those banks and financial institutions to assist their defaulting personal clients. Two of the directors of the Company are registered Trustees in Bankruptcy in Hong Kong.