Pushpay Holdings Ltd (ASX: PPH) shares have gone into a trading halt with the announcement that Co-Founder Chris Heaslip is selling 41.20% of his stake in the company (equivalent to around 4.5% of all shares in the company).
About Pushpay
Pushpay is a New Zealand-based donation systems and software business for religious, not-for-profits and education providers in the US, Canada, Australia and New Zealand. Pushpay is used by over 7,000 churches worldwide. The average gift/donation is around $192.
Video: What Is An ASX Trading Halt?
Heaslip’s Sell Down
As reported by Rask Media, Chris Heaslip resigned as the Pushpay Chief Executive Officer on 31st May 2019 but remains a director.
Based on today’s update it seems he has decided to sell 41.2% of his stake in the company or about 4.45% of the total issued capital. This equates to 12.24 million shares.
Pushpay’s shares have gone into a trading halt on both the ASX and NZX so that the company can conduct a bookbuild – in other words, find investors and determine a selling price.
The bookbuild will be conducted today and is fully underwritten by. The underwritten floor price is NZ$3.70 per share, representing a 2.4% discount to the last traded price. At NZ$3.70, the total value of the sale would be NZ$45.3 million.
What’s Next?
Heaslip will still hold a stake of more than 5% in Pushpay following the transaction, and his remaining holding will enter into an escrow deed which prevents him from selling further shares for 18 months from 9th July 2019 (the date of settlement).
Shares will remain in a trading halt until tomorrow, July 4th 2019, when the bookbuild is expected to complete. The effect on the share price tomorrow will likely be determined by the final sale price, which will be at least NZ$3.70 per share.
In a bid to stave off concerns, Pushpay reaffirmed previous profit guidance for the year ending 31st March 2020. It expects to report annual operating revenue between US$122.5 million and US$125.5 million and EBITDAF of between US$18.5 million and US$20.5 million.
2 Rapid Growth Shares
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
