WZR -12.5%: the neo-lender came out of trading halt today after raising $50m through an institutional placement with the stock hit hard. The raise was done at a steep 21.9% discount to last at 25c, apparently a cut rate price after bookrunner Goldmans failed to get the full placement covered at a higher price. One concern is that the $50m cheque doesn’t come with a great deal of detail in terms of tangible targets for what the new capital could bring. While this is concerning, the company has proven it can hit targets and has flex in the model to grow substantially which new capital will support. Retail holders will have the opportunity to participate in a Share Purchase Plan (SPP) to raise an additional $5m at the same offer price of 25c. We are keen to add to the current position and will participate in the SPP if WZR shares are trading above 25c when the offer closes on the 21st of June.
MM remains bullish WZR
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