The Openpay Group Ltd (ASX: OPY) share price has returned from its trading halt and is sinking lower
At the time of writing, the buy now pay later (BNPL) provider's shares are down 8% to $2.22.
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Why was the Openpay share price in a trading halt?
Openpay requested a trading halt on Monday so that it could arrange a major funding package to accelerate its international expansion.
This morning the company revealed a $67.5 million funding package, which comprises a $37.5 million placement, a $25 million corporate debt facility, and a $5 million share purchase plan.
In respect to its placement, the company raised the funds from new and existing institutional and high net worth investors at $2.03 per new share. This represents a 15.8% discount to its last close price.
The share purchase plan will be undertaken at the same price.
What now?
The Afterpay Ltd (ASX: APT) rival notes that this funding package will support the major partnership it announced this week with global payments provider, Worldpay from FIS.
This partnership will see the two parties collaborate to offer flexible BNPL payment products and other solutions to merchants and customers in territories in which Openpay operates. Though, the company's immediate focus will be on the lucrative US market.
Openpay's Managing Director and CEO, Michael Eidel, commented: "Earlier this week Openpay achieved a major milestone, securing an agreement with world-leading payments provider, Worldpay from FIS. Through this relationship, we will endeavour to offer Openpay's 'Buy now. Pay smarter.' payment products to FIS merchants, initially focused on targeted verticals in the US and using FIS as a merchant acquirer, based on the integration into their payment gateway. This marks a core achievement in Opy USA's six-pillar US entry strategy."
"The funding package announced today will provide valuable funding for the integration and launch of the agreement with Worldpay from FIS, as well as other recent wins, and support the close of other agreements in our deal funnel across Australian, UK, and US markets. The window of opportunity for our differentiated 'Buy now. Pay smarter.' approach is open right now. We are moving with urgency through this inflection point, and expect deployment of this funding to lead to a step-change in business performance."
