Oxpay Financial plans to raise $2 million for working capital via a convertible loan from an entity called Oxley Capital Management, owned by the company's controlling shareholder Ching Chiat Kwong.
Ching now holds a direct interest of 27.85% in the company and is on the board as a non-independent, non-executive director.
Under the terms of the deal, the loan carries an interest of 6.9% per year and can be converted into new shares at 4.05 cents per share.
If fully converted, Ching's own direct interest will dip to 23.14% but his interest in Oxpay Financial TVV via Oxley Capital Management will be 16.92%, giving him a total interest of just over 40%.
Oxpay Financial shares closed at 5 cents on June 21, up 11.11%.