It's just the beginning for Spenda!, page-8950

I'll give this a shot. I don't think that the current setup can lead to being positive cashflows. For that we would need payment revenues to increase out of nowhere. That is because lending revenues are constrained by the amount of cash in the bank and current costs structure. But an Agri DW / product launch could some CR to finance the new DW and somehow change the dynamics.

How? If you only consider revenues from the DW, and possibly add that second agri one, how much lending do they need to do? Assume 10% first loss, 10% interest rate and 22% average interest rate, then to generate $2mio net revenues per quarter and offset the costs, they would need to fully use about $60mio worth of DW. So about $50mio more than now, which is also an additional $5mio of capital.

In short, CR for $5mio and fire all cylinders on lending and they may get there.

But.... As I said many times before though, that may not do that much to the SP, other than allowing to company to survive. Why? Markets dislikes lending and applies very low multiple to lending revenues. Obviously there is room for the spin doctor to position it differently, and he could be successful. But the real success would be when Spenda can generate a healthier mix of revenues.