"Placement funds will primarily be used to satisfy the anticipated minimum APRA Tier 1 capital requirements to act as an ADI and general corporate purposes," according to a term sheet sent to potential buyers.
They are burning through money mate.
They rushed this placement at 14.5c before the SP tanked further on that very poor guidance update.
Why did they have their acquiring going through only one small bank in Europe that has had a history of AML and management issues for years?
Why didn't they have contingencies in place like obviously all their merchants do who all appear to be able to now continue settlement with other providers?
The fact that all their merchants are able to be settled elsewhere raises the question why it was so urgent to keep settling funds with them at very low (20bps) margin. Why not continue your KYC/processing relationships and devote all your effort to Tier 1 certification. Oh that's right there are millions of perf shares to go after.
The lag from last quarter when compared to the expected cash receipts now really questions what if any revenue has their been this quarter?
Where has the AU settlement revenue gone? It should still be coming in at good margin with NAB through the whole of the quarter.
The cordial continues to get watered down.
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