Home > Latest News > Zip Falls 9.1% After Cut-Price Capital Raise

Zip Falls 9.1% After Cut-Price Capital Raise

Buy more pay later company Zip has fallen as much as 9.1 per cent in morning trading after announcing the completion of its reverse book build.

According to an update from the company, Zip raised $13.6 million at a 13.2 per cent discount of 62 cents per new share.

“In recent months, Existing Noteholders have contacted the Company interested in selling back a portion of their holdings at prices that may be attractive for Zip,” explained Zip’s co-founder and COO, Peter Gray.

“As a result, we are pleased to launch this liability management exercise. This initiative will proactively manage our debt maturities by retiring a portion of our liabilities at a fraction of face value, as well as offering Existing Noteholders a liquidity opportunity. If completed, the transaction is expected to be cash neutral for the Company and accretive to Zip shareholders.”

Investors didn’t see it as neutral, selling off stock after the ASX update.

Shares are currently down by more than 85 per cent this year.

Gray also provided a general update.

“Zip reaffirms the comments provided to the market at its Annual General Meeting on 3 November 2022,” he said.

“The Company is on track to deliver positive cash EBTDA as a group in the first half of FY24. The Company continues to make progress with its rest of world strategic review, which it expects to deliver cash inflows or a neutralising of cash burn in each of its non core markets during the second half of FY23.

“The quarter to date has delivered business performance and cashflows in line with seasonal trends and expectations.

“Zip remains confident it has sufficient cash and liquidity to support the Company through to positive cash EBTDA in the first half of FY24.”



You may also like
Surge In Afterpay Sales Of Wearables, Gaming Chairs And Scooters
Australian Online Retailer’s Shares Surge 64% On ASX Today
Sydney (Image: Sourced from Unsplash)
ASX: Today’s Major Stock Updates Mall Owners and Retail Stocks
Super Retail Group Yet To Receive Legal Notification Regarding A$50 Million Workplace Lawsuit
Splash The Cash Kogan Under Investigation After Pocketing Millions From Questionable Options Deal

Popular Posts

Samsung Dominated TV Market In 2024, Gained OLED Share From LG
Latest News
/
/
Albo Set To Go On Spending Spree As Retailers Respond To Rate Cut
Latest News
/
/
Xi Strikes A Deal With China’s Tech Billionaires
Latest News
/
/
RBA Cuts Rates, Full Statement Reveals Why
Latest News
/
/
Future Of Network 10 & Paramount Could Come Down To Deal With US President
Latest News
/
/

Digital Magazines

Recent Post

Samsung Dominated TV Market In 2024, Gained OLED Share From LG
Latest News
/
//
Comments are Off
Despite struggling in the Australian TV market Samsung Electronics captured 28.3% of the global TV market last year cementing their...
Read More