UK fintech Mode announces completion of fundraising

Further to the announcement of its 2021 Annual Results on 28 June 2022, Mode Global Holdings PLC (“Mode”), the LSE-listed fintech group is pleased to announce completion of its recent fundraising by way of the issue of convertible loan notes (“Loan Notes”) to existing and new investors for aggregate gross proceeds of £1,900,000. Subsequent to publication of the 2021 Annual Results, certain directors of Mode also agreed to subscribe for Loan Notes for an aggregate sum of £65,000, which, taken together with one delayed subscription, will result in total gross proceeds of the fundraising being £2,000,000.

The Loan Notes are unsecured, have a coupon of 8% and will be convertible into Mode’s Ordinary Shares at a price equal to the lower of (i) 90% of the average mid-market ‎price for the period of 5 Business Days prior to conversion; and (b) 10p‎. To the extent not converted, the Loan Notes will be repaid after 12 months. Investors in the Loan Notes will also be issued with one warrant for every Loan Note held (“Warrants”). The Warrants are exercisable into Mode’s Ordinary Shares for a period of two years from issuance at a price per share of £0.20.

The fundraising closure follows publication of the firm’s 2021 results, which saw users grow by 261% over the year, with 70% of trading customers being repeat buyers. Trading volume increased by 732% compared to the same period in 2020.

Rita Liu, Mode Global Holdings’ CEO comments: “Our recent fundraising displays the ongoing strength in our core businesses and shows that appetite from both new and existing investors has not waned despite the recent bout of market volatility. This fundraising round provides us with a greater opportunity to expand our unique position as an FCA-registered and LSE-listed fintech leader.”

Jonathan Rowland, Mode Global Holdings’ Executive Chairman comments: “Since Mode’s inception, we have worked hard to develop a suite of products that offers long term value to businesses and consumers that modernize financial services The latest fundraising round shows that investors believe we have done that, and will continue to do so in the long term. In today’s tough environment, our ability to close the fundraising round shows that we, and crypto, are here to stay. We look forward to continuing to deliver value to shareholders.”

Get latest news from African Startup ecosystem

Latest stories

You might also like...