Change Financial Ltd 

Appointed leadership personnel and raised funds during June Quarter: US-focussed fintech company, Change Financial Ltd (ASX: CCA) during the June quarter 2018, appointed leadership personnel and raised funds for the strategic acquisition of the Ivy Entities (‘Ivy’). The company has appointed Eric Bachman as CEO effective from 1 August 2018 as part of restructuring the company.
 
Meanwhile, CCA has raised US$2.62 million in a heavily oversubscribed placement to fund working capital, acquisition of the Ivy call-option (US$250,000) and deployment of enterprise solution. However, the acquisition of Ivy Entities is subject to shareholder approval. The company has planned to integrate the Ivy platform into its enterprise solution and consumer product to evolve its unified payments platform. Further, Ivy during the quarter has signed a partnership with HiveEx, which is a leading cryptocurrency trading platform, to launch IvyPay, a platform that is expected to turn cryptocurrency into AUD instantly and allow it to be used to make payments. Moreover, CCA has finalised connectivity testing with Mastercard of innovative Software-as-a-Service enterprise solution and progressing closer for a  commercial launch. The group thus has associations with names such as Mastercard etc., and is now set to commence testing customer accounts with a full launch in 2H FY19 in view of its target to become one of the small number of processors fully integrated with Mastercard.
 
Group’s banking mobile app, ChimpChange has attained total transaction volume of US$35 million and this app is now under strategic review for exploring monetisation opportunities. Further, deposits of US$11.9 million and record efficiency of cost of acquiring customers of just US$10 per customer in the company’s consumer product was reported. At the end of the June quarter, the company had cash of $1.67 million.
 
Meanwhile, CCA stock has fallen 62.31% in three months as on August 06, 2018. However, the stock soared up 20% on August 07, 2018. Based on the foregoing, we give a “Hold” recommendation on the stock at the current price of $ 0.450 in view of the group’s performance and the space in which CCA operates.

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