Good analysis, Steve. What is your view about the $50m corporate debt maturing Nov 2025? Will they be able to refinance it or have to do a capital raising again? To me, this together with high net losses and lack of grwoth capital are teh top 3 risks for this stock. Recently, Wisr (WZR) did a debt facility with Nomura. If MME can do similar facility to replace the current Pacific Equity facility, the SP would have another boost. I suspect the MME management would be also talking to Numura about possibility of a such deal as well. I agree the growth for MME would be restrained because the capital available for growth is very limited. The recent quarter's growth capital is coming from the warehouse funding facility renegotiation that relesed $10m. This capital would be quickly used up. Longer term sustainable growth needs the business to generate cash profit or external capital injection. The business current profiatbility is very small and is not sufficient to support the growth the company wants. Hopefully, as the book grow and operating expenses remain relatively stable, the profit margin positive "gaw" will open up which will furhter accelerate growth. Net losses ratio seems reducing which is also good. Hopefully, once the old Soc One personal loan book matures out the net losses will stablise at low levels. Overall I think all the risk parameters are improving and the company is moving in the right direction.
MME Price at posting:
9.7¢ Sentiment: Buy Disclosure: Held
