OxPay Financial Fully Utilises S\$1.84 Million Convertible Loan for Operations, Repayment, and Staff Costs

Key Takeaways for Investors

• OxPay Financial Limited has fully utilised the S\$1.839 million net proceeds raised from a convertible loan facility.
• The loan was provided by Oxley Capital Management Pte. Ltd. under a convertible loan agreement signed in January 2025.
• Funds were allocated across four major areas: operating expenses, employee remuneration, repayment of existing loans, and directors’ fees.
• This update confirms that the use of funds aligns with the intentions disclosed in the company’s earlier circular and is now complete.

In-Depth Report: How the Convertible Loan Was Used

OxPay Financial Limited has issued an official update announcing the full utilisation of net proceeds totalling S\$1.839 million, raised via a convertible loan facility provided by Oxley Capital Management Pte. Ltd. The update follows the company’s previous disclosures in July and August 2025, and confirms that all raised funds have now been deployed in accordance with previously stated intentions.

Breakdown of Fund Utilisation

• Operating Expenses: Approximately 40.2% of the net proceeds (an estimated S\$739,000) were allocated to general operating expenses. This substantial allocation underscores ongoing operational needs and possibly signals a focus on maintaining business continuity.
• Employee Remuneration and Statutory Contributions: Roughly 24.4% (about S\$449,000) was used for staff costs, including salaries and statutory payments. This allocation highlights the company’s commitment to retaining talent and meeting statutory obligations.
• Repayment of Existing Loan Facilities: About 32.2% (circa S\$592,000) went towards repaying existing loan facilities, a move that could improve the company’s balance sheet and reduce future interest expenses. Investors should note this as a sign the company is actively managing its debt levels.
• Directors’ Fees: The remaining 3.2% (roughly S\$59,000) was paid out as directors’ fees, reflecting board compensation from the proceeds.

Notably, the entire net proceeds have now been exhausted, with no remaining balance. The final disclosure on the general working capital shows that S\$584,000, previously earmarked for this purpose as of August 2025, has now been fully utilised.

What This Means for Shareholders

• Completion of Fund Deployment: The announcement that all proceeds have been fully deployed provides clarity on the company’s liquidity position and may address investor concerns about cash reserves.
• Debt Management and Financial Health: The allocation of a significant portion of funds to loan repayments could signal improved financial discipline, potentially reducing future interest expenses and improving the company’s risk profile.
• Ongoing Operational Funding: Heavy allocation to operating and staff costs signals the absence of surplus cash for new investments, which could impact future growth prospects unless new funding is secured.
• Price Sensitivity: Since the loan facility was convertible, investors should consider the potential dilution effects if the conversion feature is exercised by the lender. The current announcement does not specify any conversion, but this remains a possible future event.

Potential Share Price Impact

This news is potentially price-sensitive as it confirms that OxPay Financial has no remaining proceeds from the recent financing, and provides full transparency on the use of funds. The company’s proactive debt repayment could be viewed positively by the market, while the exhaustion of working capital may prompt questions about future funding needs and growth strategy.

Official Statement

The update, signed by Executive Director and CEO Chin Mun Chung, reiterates that the utilisation is consistent with earlier disclosures. The company’s sponsor, ZICO Capital Pte. Ltd., has reviewed the announcement, though the Singapore Exchange has not examined or approved its contents.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. The author and publisher are not liable for any losses arising from reliance on this information.

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