The Fatfish Group Ltd (ASX: FFG) share price is soaring during midday trade after the company announced a positive update.
At the time of writing, the tech venture builder company's shares are up 18.64% to 7 cents.
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What did Fatfish announce to the ASX?
Investors are driving up the Fatfish share price after the company secured funding to grow its businesses.
According to its release, Fatfish has raised $8 million from United States-based fund Arena Investors L.P.
Founded in 2015, Arena Investors is an institutional asset manager with over $2.2 billion in committed assets. The firm is led by a management team with decades of experience in corporate transactions and investment.
The funding agreement will be via convertible notes at a fixed price of 7 cents per Fatfish share. This represents an 18% premium to the 5.9 cents at which the Fatfish share price closed yesterday.
The convertible notes will have a coupon rate of 1% per annum, with a 12-month maturity date from 25 August 2021.
Proceeds of the funding will be used to expand the company's buy now, pay later (BNPL) and fintech business in Southeast Asia. Fatfish has been actively building an extensive suite of BNPL and digital lending services in the Southeast Asia region.
Fatfish CEO Kin W. Lau commented:
We have partnered with Arena Investors for 3 years now. They have been an incredibly supportive investor, working with the management of the Company to grow our business. They have provided funding to the Company at key inflection points of the Company.
Over and beyond, they have also bought more shares in the open market. In addition, Arena Investors has extensive experience in funding lending related tech businesses globally. They are a long-term strategic investor that we value.
Fatfish share price snapshot
Over the last 12 months, Fatfish shares have accelerated by 600%, with year-to-date gains sitting at 75%. The company's share price hit an all-time high of 43 cents in February this year, before sharply pulling back.
Fatfish presides a market capitalisation of roughly $71 million, with approximately 1 billion shares on its books.
