Cirralto Limited - The Cheapest 'Payment Co' House on the Best Street

Hi Guys,

A few notes on CRO. IMO oneof the best value Fintech plays on the ASX given the current sector strength.

Cirralto Limited (CRO) is acompany that owns and operates technology assets and services that enable modernizationof business IT systems via the conversion, migration and management of serverbased legacy data and systems to the cloud. More recently, with the launch of SpendaPay, the company has moved into the Merchant/Contactless Payment Solutions, making it one of the cheapest (by market cap) payment services companies listed on the ASX (or at least from what I could find from my own research).

Corporate Snapshot
Shares on Issue:823.3 million

Current Share Price: 0.007
Market Cap: $5.76million

Cash in bank (31/3/20): $17K, additional recent convertible note funding $600K
Available financingfacility: $1.89 million, nil drawn
52 weeks high: 0.017
52 weeks low: 0.002
Unlisted Options: ~ 84.5 million at various exercise and expiry dates.

Current Directors Ownership: (9%)
Peter Richard: 13.9 million
Howard Digby: 666k
Stephen Dale: 1.5 million
Adrian Floate: 55 million

Software Platforms
Company has 2 major platforms
1) Synk’d
2) Spenda

Synk’d is an integration platform as a service (IPAS) that connects different software systems together to enable the sharing of transactional data including customer, supplier, inventory, pricing and stock on hand to give teams access to the information they need in the system they need it.
The application of the two technologies provides business owners with a real-time overview of their business’ performance

Spenda
Spenda Apps are a set of operational software that allows a customer to standardise their business processes from selling, servicing, inventory management, procurement and payment. Cirralto launched their merchant payment service (SpendaPay) on 17 March 2020 and started offering both
EFTPOS and online payments services to its customers.

From the info available it appears that Spenda software is integrated with all major payment types, in addition to major accounting and enterprise systems. The software is available for download through the Apple App Store and through the Xero App marketplace.

Merchant payment service (SpendaPay)
Cirralto launched their merchant payment service on 17 March 2020 and started offering both EFTPOS and online payment services to its customers.

As per the above, the company expects that merchant transaction fees/services to increase gross customer revenue by 85% - 400% (from exisiting clients only) . This is due to the introduction of new revenue streams, including:
● Attributabletransactional value / Gross transaction value
● Merchant feeincome / attributable transaction value
● Card transactionvalue / Gross revenue per customer
● Merchant feeincome / Number of customers

As outlined in the last ann (18^th June), customers have begun to be onboarded onto the payment platform and the company is seeing a large demand for contactless payment in light of Covid. IMO this will allow rapid growth and uptake of Cirralto’s merchant payment services. Given the last sentence, I think we can expect strong news flow regarding ‘payment solutions’ in the coming weeks which will allow CRO to get much needed exposure.

Happy to be a holder at these levels given the performance of the fintech/payment platform co’s in the past few weeks and months.

GLTA