News: MMM Marley Spoon AG Posts Q4 Revenue Of €35.2 Mln, page-4

They’ll get through Q1 CY20 with existing cash and have US$7.5m (=~A$11m) headroom under the WTI facility to see them through Q2 and most of Q3 but you’re right, they’ll need to raise again before year end. I’m expecting an equity raise in 2H this year once they’re closer to breakeven to clean up the balance sheet. Other than WTI, the majority of their debt is convertible at $0.30-$0.50 per CDI (WOW and USV respectively), so if they can continue to execute and move towards profitability the SP should in theory rise which would facility conversion of this debt to equity.

I used to think the meal kit industry was on a road to nowhere but I’ve come around to view that there is a market out for them. Woolies and Coles have high fixed cost bases to contend with - they are moving to smaller store formats, self check out etc to reduce these - but meal kit providers don’t have this legacy infrastructure and I don’t think they are that far off being cost competitive with traditional grocery. If the gap narrows their penetration should increase etc etc. There’s a long way to go - and MMM and HelloFresh to a lesser extent still have a lot to prove - but I don’t agree there’s no value in the business.

Ps kudos on the Master Shake avatar technoboy, ATHF is a great show....