RIS seeks $2 mln to break into Indian market

RIS seeks $2 mln to break into Indian market

Aug. 3 (BusinessDesk) – Payments system software developer RIS Group will tap shareholders for as much as $2.02 million to help fund its plans to launch in the Indian market and grow in Australia.

RIS has entered a 10-year agreement with partner USG Solutions Pvt. to license the I-RIS operating system in India.

The company, which yesterday announced a full-year loss of $3.2 million for the year through March 31, said it intends to undertake a partially underwritten one-for-three rights issue for existing shareholders at 1 cent a share.

That’s an 83% discount to their current price of 6 cents. The funds will be used to implement its plan to break into India with a hard launch scheduled for the first quarter of 2011, and to fund its Medicare EasyClaim initiative to simplify Australian Medicare claims.

RIS expects its first live financial payment transaction in India to take place later this year, and will build data centres in Mumbai to support its systems.

USG Solutions will underwrite the rights issue up to $1.25 million and Gamaj Pty. will go up to $300,000. USG will also provide a facility of up to $1.25 million to RIS, while Gamaj will provide a loan facility of up to A$300,000.

USG will receive 50 million options to buy shares in RIS at 6 cents over a 48-month term from their issue, and set up a software development centre in India to fast-track the scheme.

RIS will be entitled to receive royalties of 10% of all gross revenue by USG from its business operations in India, using the New Zealand company’s software.

(BusinessDesk) 16:42:14

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