You're more than kind Eugene, along with the others, but I was suspended for profanity. Using a representation of a swear word - not the word itself, more an intimation of it. Just goes to show lol
It was interesting to see that ZIP came through with the required cashflow report and it was solid, it was great, showed profit even!!!!! In actuality........in the CR Disclosure at 30 June, ZIP reported $80 mil cash at bank among $353 mil restricted cash, which is rising at about $25 mil each qtr, as unrestricted cash goes down by about the same amount. This is because lenders keep up the pressure on additional security for the loan book. In the 4C they reported $125 mil unrestricted cash, so I'd assume the $45 mil difference represented the shortfall in funding for the payout of the loan, penalty and costs, as well as having paid $20 mil to reduce the loan. That was a good enough reason to hold off presenting the 4C until the CR was bedded down, to prevent being in breach of market rules.
That loan was costing between $5 mil and $6 mil per qtr to service, less than $2 mil per qtr, which was insignificant. Why did they spend $300 mil to get rid of a $150 mil loan of 6 months?
Onwards and upwards, contrary to what I thought before, they clearly won't need to raise capital urgently, having access to $125 mil 1/3 of which represented by the reimbursement to the bank account by the capital raise. I'll maintain that they can't grow and they are going to be trounced either by rising arrears or cuffs on the loan book, as households batten down the hatches and BNPL popularity seems to be waning, which is understandable, given the monumental costs attached to both users and merchants, as well as the new regulations, not yet proclaimed, but well flagged.
Finally, OPT did one of its very regular capital raises recently - similar to ZIP, at $229 mil, with a roughly $50 mil retail component, declaring $17 mil costs. ZIP raised $267 mil with a $50.mil retail component, declaring $50 mil costs, all part of my estimated cost of $302.5 mil to repay a $150.mil loan held for 6 months.
If you're focused on the share price as almost everybody is, it's onwards and upwards for now. The next financials at the end of August will contain a ,$139 mil leg up from the wipe out of the Convertible Notes. IMO ZIP desperately needs to demonstrate that it has a business plan, but at this point it doesn't have one and it has given itself a flying start to the 2025 FY with a $89 mil penalty for paying out a loan of $150 mil after 6 months. Total lunacy.
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