Cash Converters (ASX:CCV) has announced an underwritten entitlement offer to raise around $40 million.
The offer will be priced at 32 cents a share, which is a 12.8 per cent discount to the five day volume weighted average price of 37 cents.
Funds raised will be used to strengthen the balance sheet and reduce debt.
Cash Converters is a re-seller of second hand goods and provider of secured and unsecured loans.
Cash Converters (ASX:CCV) shares went into a trading halt on Tuesday morning ahead of the offer.
Shares in the company last traded at last traded at 36 cents.