PERTH: Spenda Limited (ASX:SPX), an innovative software company providing software and electronic payment solutions, announced on February 24, 2025, that it has agreed to sell its Invoice Financing portfolio to Grapple Invoice Finance Fund Pty Ltd for $2 million, subject to portfolio performance.
The sale will result in the release of $2.3 million in first-loss capital, in addition to the $2 million in sale proceeds. This transaction is expected to recapitalize Spenda’s balance sheet, providing an additional $4.3 million in available working capital and associated operational savings of approximately $600,000 per annum.
Under the terms of the agreement, Grapple will pay Spenda an initial consideration of $500,000 upon completion, followed by $1.5 million in deferred consideration. The deferred payment includes 10 monthly installments of $75,000 starting April 14, 2025, and a final balloon payment of $750,000 by March 31, 2026, subject to portfolio performance.
The sale will also result in a reduction of approximately $50,000 per month in gross profit, which will be offset by cost reductions associated with the operations portfolio. Spenda and Grapple will enter into a referral agreement for an initial period of 24 months, under which Spenda will receive a referral commission equal to 100% of the Net Interest Margin (NIM) for the first year and 50% of the NIM for the second year for deals successfully referred to Grapple.
Adrian Floate, Managing Director of Spenda, commented, “The sale of the loan book is the first step in the Company’s restructuring its balance sheet and releasing capital whilst realizing value through bringing forward future cashflows. We look forward to working with Grapple in growing the invoice finance loan book to the benefit of both parties.”
Stephen T. Dawson, CEO and Founder of Grapple, added, “This transaction allows both businesses to concentrate on respective core competencies and further drive the uptake of Grapple’s market-leading digital and real-time invoice financing platform.”
Completion of the transaction is expected to occur on February 28, 2025.