Ann: Q3 FY23 Results Update - ZIP Improves Margins, page-31

Excellent work as always.

They have only $51 million of cash and liquidity available at quarter end and given the large transaction volumes at an annualised $8 billion plus it will only take a slight detonation in bad debts and increase in funding costs to wipe that blance out.

Bad debts showed a 27% deterioration Q on Q and a 1 % increase in bad debts and 1% increase in funding costs would wipe out that cash balance

ANZ bad debts are now reverting to recent historical highs and trending upwards







You can also expect convertible note holders to be pushing for settlement.

I think CR is inevitable in the next quarter but as stated previously there will be very little appetite from previous hedge funds who relied on liquidity and volatility to support the shorting

Capital raises in the past have been supported by weekly transaction values of between $100 to $300 million dollars but the turnover is now down to between $5 and $20 million dollars so there is very little appeal for hedge funds to get involved.