We hereby notify you that Chip Financial Ltd is intending to issue £3,000,000 of new shares in the capital of the Company (“New Shares”) for a subscription price of £1.036904 per share (“Subscription Price”).
Since this pandemic gripped the UK, Chip savers’ behaviour has changed. The frequency and volume of sessions within the app have increased significantly, and continue to climb on a daily basis. In the last 3 months, Chip’s user base has increased over 40%, with levels of growth overtaking leading challenger banks. Then, just last week, Chip received full FCA authorisation. This now enables us to launch FSCS interest bearing accounts, roll out ChipX to our entire user base and generate significant revenues.
In line with our plans, we have been in active discussions with several venture capital funds to secure a £20 million investment at an expected valuation of circa £80 million. These conversations have been disrupted for the past few weeks, and we’ve taken an active decision not to engage until the peak of the crisis has passed. Whilst we do not have an agreed term sheet at this time, we are extremely confident that with the level of interest we currently have the investment will close this year at an attractive valuation - albeit later than originally anticipated.
Having spoken with many of you there is extensive support for an additional capital raise, enabling the company to seize the opportunities in front of us. In essence, with this money we won’t need to slow our plans to launch the FSCS accounts and ChipX, whilst having additional time to secure the VC investment.