Technology company eServGlobal (ASX:ESV) will participate in a €10 million capital raise by HomeSend – a global payments network it has a joint venture share in with Mastercard and communications company BICS.
eServeGlobal will be investing €3.89 million into HomeSend to maintain its 35 per cent share in the company, using its existing cash resources.
BICS will not participate in the capital raise, lowering its stake to 8 per cent, while Mastercard increases its stake as the largest shareholder at 56 per cent.
The funds will be used by HomeSend for working capital and to accelerate building additional functionality to meet its medium to long-term plans.
The board of eServGlobal said it believes the proceeds will allow HomeSend to better focus on growth opportunities in the cross-border banking market.
Shares in eServGlobal (ASX:ESV) last traded at $0.19.