Cachet Prices Public Offering, Looks toward a $9.3 Million Payday
Cachet Financial Solutions expects to raise nearly $9.3 million in its public offering this week, according to an SEC filing. The Minneapolis-based financial technology provider and Pay Award winner, which priced its offering at $4.50 per share, plans to use the proceeds for working capital, to pay down debt and other, unspecified purposes.
Trading on the NASDAQ Capital Market under the symbol “CAFN,” the stock opened at $4.40 today and reached a peak of $4.50 by late morning. Cachet’s market capital stands at about $13.62 million, according to Yahoo Finance. The public offering pricing applied to approximately 2.33 million shares, Cachet said. The company also announced a reverse stock split of its common stock in a ratio of 1 for 1.5 that was effective as of March 9, 2017. The public offering is expected to close Wednesday.
The public pricing offer comes only months after Cachet upgraded its Pay Award-winning Select Mobile Money prepaid mobile platform with enhancements that enable program managers to design and launch branded apps more quickly, as well as provide cardholders with a new international money transfer service. A majority of Cachet’s existing clients have committed to migrating to the updated platform and three are in the process of doing so. , We’re just at the tip of the iceberg when it comes to using the mobile app to drive stickiness in prepaid and reducing the burden on the call center,” Walt Granville, Cachet’s senior vice president of mobile innovation, told Paybefore in a recent Q&A.
Cachet’s next round of growth will come from “providing additional service elements that allow customers to, for example, create an email to program providers with all the transactional information they need to challenge an improper charge. We’re also investing in features like giving cardholders access to their credit scores and a host of other features,” Granville said.
Cachet’s initial public offering came in 2014.