Ann: Trading Halt, page-192

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Tekvest

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17/07/24

15:26

Post #: 74796713
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Originally posted by Jstarmu1999: ↑

this is a positive cr to me.

1. add 23m annual to future FY reports. this cr is to pay off the 150m loan with a fixed 15pc interest rate. so it will save 23m interest cost or in another word, this equals adding 23m profit to future FY results.

2. better FY result in August. according to today's report, In FY24 zip will achieve $77m to $80m Cash EBTDA and good net profit thanks to note holders convert. Pay off the loan means zip can move the paid 11.6m interest to one time cost instead of recurring payment. so we have good chance to see net profit in FY24 without all one time cost consider HY24 result shows only -1m net loss without all one time cost. net profit + back to asx200 may tick some etf's checkboxes and so attract big etf buyers. why not if proven good growth at the highest interest rate environment + upcoming rate cuts.

have to say this loan itself looks very stupid. huge cost in just 7 months. however if zip raise 150m by the end of 2023 when sp was 60c, it would cause a lot more dilution. Ares is a huge winner from this loan. but think this way, Ares could have double or triple their profit if they bought zip shares directly instead of lending money to zip.

my understanding to this cr. it has very similar reason to the small shareholding sale. inline with zip trying everything to save spending and focus on profit which is the right move to me. and I expect a very similar path in share price. sp may see $1.5 in short period and rally hard with upcoming FY result and US rate cuts.

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It wasn't a fixed rate of 15%, it was only until July and then to be renegotiated and this is the result. You might assume the rate was going up or that the lender wanted their money back. The cost to ZIP was a neat $250 mil, or $100 mil for 7 months plus the repaid capital of $150 mil. More to shareholders for costs of raising capital but still no money in the bank.

ZIP Price at posting: $1.61 Sentiment: None Disclosure: Not Held
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