Caason Group has structured a 12-month $1.5m secured convertible note for Peppermint Innovation (ASX: PIL), offering a 12% yield. Caason Group has finalised and executed all legal documents for this convertible note making the offer available to external sophisticated or professional investors.
The security provided is Peppermint’s 100% ownership of Zambian Copper Pty Ltd; a non-core asset. Caason Group holds the mandate to sell this Zambian copper asset for Peppermint and is in negotiation with a number of prospective buyers. The sale is expected to return to Peppermint greater than $1.5m.
On the basis that the Zambian copper asset may be sold shortly, Peppermint will redeem the note with a 12% return or investors may elect to convert their support into Peppermint shares. This may represent a great opportunity to gain an entry position into the stock.
To date, Caason Group has already been contributed approximately $400,000 to the convertible note with $1,100,000 remaining to be placed. Caason Group is also a top ten shareholder in Peppermint and is committed to supporting the company’s long term growth.
Craig Astill, Caason Group MD & CEO, said: “Peppermint’s vision to deliver financial inclusion and social good to those with limited access to banking in the Philippines fits with our investment ethos. We are very encouraged by Peppermint’s efforts to accelerate the adoption of its financial technology platform in the Philippines and beyond. In Peppermint’s recent ASX quarterly announcement, it reported cash receipts up an impressive 92% for the quarter and 183% over the prior six-months with further growth expected.”
The proceeds of this convertible note will go into Peppermint to accelerate business development and the continued commercialisation of its growing Bizmoto platform (remittance, bill payment and mobile banking services). Encouragingly, the Bizmoto network has already achieved 12000 agents.
Financial backing is also coming from PEGG Capital Limited; which has now increased its allocated Peppermint investment to $2m and Albert Cheok (PEGG Capital Limited Chair and 5G Networks Chair) has been appointed Non-Executive Director on the Peppermint board. PEGG Capital is a 600 million Euro Malta-based investment company and has notified Peppermint of its intention to increase funding support to up $5m in total.