Debt hits IncentiaPay shares

INVESTORS in IncentiaPay gave the company’s price a 9 per cent battering yesterday after it spiked 21 per cent on Friday.

The Gold Coast-born electronic payments outfit announced last week it had borrowed $4 million from its largest shareholder to pay down debt and fund ongoing operations.

Shares in IncentiaPay opened at 6.6¢ and dipped 0.6¢ lower to 6¢ before recovering to close 6 per cent down at 6.2¢.

The “short-term funding” is to come from Suzerain Investment Holdings Limited, a related entity of its largest shareholder, New Gold Coast Holdings Limited.

New Gold Coast Holdings is a subsidiary of Mauritiusbased Skybound Capital, which bought a near 15 per cent stake in IncentiaPay in February.

The company also announced a proposal for a fully underwritten four-for-five non-renounceable entitlements offer at 0.08¢ per share, with which it hopes to pay back the balance of its debt with CBA as well as the new Suzerain loan.