I don't really see your case 1. The business has just raised a bunch of money at the IPO, they have been and continue to be profitable and have reiterated they'll have the warehouse funding this quarter. That warehouse should give them a $500m facility compared to a loan book of $83m at the half year ... that gives them a LOT of growth headroom! They'll need to put somewhere between 5-10% equity into that facility, which they would have in the bank (they had $40m in cash at the half year). I can't see how they'll need to raise money unless they growth at a much, much higher rate and then given the fixed costs in the business, they'll be generating a lot of free cash flow.
I think people forget this business is profitable, it's not like many of the BNPL businesses which make losses. The warehouse will decreasing their funding cost, which again will add to their profitability.
MME Price at posting:
$1.28 Sentiment: Buy Disclosure: Held
