The QuickFee Ltd (ASX: QFE) share price rocketed to all-time highs of 93 cents yesterday. Despite not releasing any news to market yesterday, QuickFee shares finished the day 33% higher at 86 cents per share.
Yesterday was the third consecutive day of strong growth for the payments company, which also saw 6% and 18% gains on Thursday and Friday, respectively.
So what?
Given the lack of notable announcements, QuickFee was issued a speeding ticket by the ASX around 2pm yesterday afternoon. Despite there being no obvious answer to the recent trading in its securities, in its response, QuickFee stated it “observed that several other buy now, pay later (BNPL) entities listed on the ASX have experienced large securities price increases in recent weeks.”
As recently as last Tuesday, QuickFee announced it was extending its lending facilities in the US and Australia, in an effort to cater for growing demand in its payment plans. QuickFee’s current lender, Global Credit Investments, has executed agreements to double the company’s existing US$5 million debt facility. It also agreed to increase QuickFee’s borrowing ratio from 80% to 85%.
These expansions should give QuickFee added flexibility following the increased demand for its payment plans in the US market. The company’s Australian debt facility was also increased by $5 million to $25 million dollars to fund anticipated growth in the Australian market.
QuickFee also recently completed a successful placement of $7.5 million in order to fund growth opportunities. This was as a result of COVID-19 driving unprecedented US transaction volumes as firms switch to electronic payments. The company reported its US transaction volumes had doubled since February, leading to its highest ever US revenues.
About the QuickFee share price
QuickFee provides professional service companies such as accounting and law firms a payment gateway solution for their clients.
Coming up to its one-year anniversary of listing on the ASX, the QuickFee share price has been surging higher recently with highs of up to 93 cents. Since listing, QuickFee shares have returned 73% and the company’s market capitalisation now sits at $161.9 million.
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Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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