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Z1P Ann: Trading Halt
Price Sensitive: Y
Date: 28th Feb 2022, 9:26am
>>> Read announcement: Google: Z1P Market Announcements
Price Sensitive: Y
Date: 28th Feb 2022, 9:26am
>>> Read announcement: Google: Z1P Market Announcements
Z1P Ann: Trading Halt - 28th Feb 2022, 9:26am
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Fastback6666
Regular
I am invested in ZIP longer term and have not seen the details for a cap raise but it does seem crazy to perform a cap raise right in the middle of a current global tech correction.
If they are raising a lot of money at a discount to the current price that is just giving away so much of the company for not much value at all.
The only small win here is if they are buying out a BNPL competitor they will also be at a very discounted price so it would be a like for like situation in regards to massively lower purchase price for the competitor I would expect - all BNPL companies are in oversold currently, some more than others - ZIP being one of the worst in relation to how much revenue then receive.
If they are raising bulk funds just for the sake of having money in the bank to operate when they already have some decent amount of money in the bank that would be a bit disappointing. ZIP could really just choose to stop expanding so much right now in these tougher economic times and focus on banking their profit to bring in cash, which they have said they can do at any time in past meetings.
I sure hope these terms and funds are critically needed and used in the right way. As ZIP are in massively oversold territory here and would seem silly to be cap raising now if not for strategically important need.
SZL in halt also. Interesting timing given the rumour mill lately.
Fastback6666
Regular
Yes I just saw that as well Zeebot - looks like the buyout is going to occur of Seezle. As I said - not so bad if ZIP are buying out a competitor who is also in a very devalued state as well. Shareholders of SZL would not be happy though I would exepect if they are being bought out at these levels. But SZL could be in a lot of financial stress and know they need a buyout potentially.
Fastback6666
Regular
I just saw the details - buyout occurring of Sezzle but also additional raising a possible 198mil to have in the bank. The extra nearly 200mil asked for should have been done back at least an SP of $7. That is a seriously silly move here and just a unwarranted silly dilution at these levels.
148mil offered for institutional and professional investors. I do wonder if they are doing this as a sorry and makeup to the ones who bought in at cap raises at higher prices. In the end its business and they should not be doing this.
148mil offered for institutional and professional investors. I do wonder if they are doing this as a sorry and makeup to the ones who bought in at cap raises at higher prices. In the end its business and they should not be doing this.
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Fastback6666
Regular
I agree Seezle and ZIP together will be stronger and will help to achieve ZIP being a larger global banking power longer term. I think they will just rebrand Seezle to ZIP in the medium term for the global brand to be there.
I hope ZIP's vision works out as we are in the big leagues now based on revenue, customers and merchants.
Hard to say what the SP will do here on open - but I expect it to fall further on this dilution news even though to most the Seezle deal is good for further strength but having a 22% share I am not fully sure about - hard to say when all BNPL are so devalued at present - I would need to compare how many merchants, customers and revenue that they are producing . I don't know a lot about Seezle only that it was a decent US player but smaller. Looks like I have some reading to do on the packages put out by ZIP.
I am in ZIP for the long term and hoping that this still plays out well long term for ZIP based on their bulk and building merchants, customers and revenue that they are producing. What I do know is that ZIP is massively undervalued if you compare their merchants, customers and revenue to other US players.
The merchants, customers and revenue just need to stay consistent and keep growing and the SP should very well looked after in the long term as they are becoming a global beast - they will be a global bank. They have not even listed on the Nasdaq as yet and when that does occur in the future that will help the true value of the company - I wont be selling some shares before that at least occurs. At least I was able to load up another 20k in this $2 range which I can't argue about.
I hope ZIP's vision works out as we are in the big leagues now based on revenue, customers and merchants.
Hard to say what the SP will do here on open - but I expect it to fall further on this dilution news even though to most the Seezle deal is good for further strength but having a 22% share I am not fully sure about - hard to say when all BNPL are so devalued at present - I would need to compare how many merchants, customers and revenue that they are producing . I don't know a lot about Seezle only that it was a decent US player but smaller. Looks like I have some reading to do on the packages put out by ZIP.
I am in ZIP for the long term and hoping that this still plays out well long term for ZIP based on their bulk and building merchants, customers and revenue that they are producing. What I do know is that ZIP is massively undervalued if you compare their merchants, customers and revenue to other US players.
The merchants, customers and revenue just need to stay consistent and keep growing and the SP should very well looked after in the long term as they are becoming a global beast - they will be a global bank. They have not even listed on the Nasdaq as yet and when that does occur in the future that will help the true value of the company - I wont be selling some shares before that at least occurs. At least I was able to load up another 20k in this $2 range which I can't argue about.
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