Zwipe has announced a fully guaranteed rights issue of NOK 35m, with the possibility of further proceeds in December 2024 through the exercising of warrants that accompany the rights issue. The company has called an EGM on 22 November and the outcome of the rights issue will be published on 13 December. The dilution from the first part of the rights issue is 50%, with further dilution through the exercising of the warrants.

This capital raise offers an opportunity to accelerate the commercialisation of the company’s two platforms. Pay has 20 partnerships that are in their turn undertaking around negotiations with potential users. The commercial launches with Kuwait International Bank (KIB) and Middle East Payment Services (MEPS) during Q2 has prompted interest from other institutions in the Middle East, the majority considering going direct to launch, rather than running pilot schemes. In Access, Zwipe has signed partnerships with global companies including Schneider Electric, Certego, AWT, Mc Dean, and Matrix, while Berkshire Hathaway Energy Group, Richmond airport, Prosegur, and one of the three largest cloud suppliers in the world are all running pilot schemes. We find it likely that at least some of these pilot schemes will result in orders in the coming quarters.

Positive that uncertainty over raising of capital now eliminated