ARC Funds Limited (ASX:ARC) has secured $600,000 in new equity capital through a placement at $0.115 per share, a 4.5% premium over its last closing price. The company has also secured $800,000 in private debt facilities with a 12% annual interest rate, due by August 8, 2025. These funds, along with $1 million in existing cash reserves, will finance the acquisition of a 63.49% stake in The Term Deposit Shop Pty Ltd (TTDS) and 100% of TTDS Holdings Pty Ltd. The placement received strong support from both new sophisticated investors and existing shareholders, demonstrating confidence in ARC’s strategic direction. Approximately 5.2 million new shares will be issued under the placement, ranking equally with existing shares.
TTDS operates an online platform that streamlines investing in term deposits and facilitates switching between banks. It currently manages over $550 million in funds under management (FUM) and is approved on over 100 Australian Financial Services Licensees’ Approved Product Lists. The platform caters to financial planners, facilitating transactions with over 10 Australian banks, Building Societies, and Credit Unions. ARC aims to capitalize on the approximately $1 trillion in term deposits in Australia, leveraging TTDS to exponentially grow its deposit funds under management. The acquisition is expected to provide ARC funds access to a larger pool of potential new investors. K&L Gates acted as legal advisors, and Morrison Securities Pty Ltd served as the settlement broker for the placement.
