- Food kit delivery company Marley Spoon (MMM) has entered a trading halt until next week as it gears up to tap investors for some fresh funding
- The details of the cap raise will be announced by Tuesday, October 27 at the latest
- As it stands, it's not yet certain how much Marley Spoon plans to raise and for what it will use the new funds
- The company has been one of few to benefit from the COVID-19 pandemic as demand for meal kit deliveries soared
- Over the first half of 2020, Marley Spoon bolstered its revenue by 89 per cent compared to the same time last year
- The company had €18.4 million (around A$31 million) in cash at the end of June
- Shares in Marley Spoon gained almost four per cent today to close worth $3.49 each before the trading halt was announced
Marley Spoon (MMM) has entered a trading halt until next week as it gears up to tap investors for some fresh funding.
The details of the capital raise have not yet been revealed, meaning it's not known how much the food kid delivery company plans to raise and for what it plans to use the new funds.
Trading in Marley Spoon shares will be paused until Tuesday, October 27, unless the company releases an announcement about the raise before then.
Marley Spoon has been one of the few companies to benefit from the COVID-19 pandemic, given the nature of its services. The company makes recipes and food kits so people can have everything they need to cook a family meal delivered straight to their front door — a pertinent service for when people are locked inside their homes by law.
During the first half of the 2020 calendar year, Marley Spoon bolstered its revenue by a whopping 89 per cent compared to the same time last year. In the first half of 2020, the company made €116.2 million (around A$194 million) in revenue; in the first half of 2019, the company made €61.4 million (around A$102 million) in revenue.
This revenue boost helped the company reduce its half-yearly earnings before interest, tax, depreciation, and amortisation (EBITDA) loss from €19.6 million (around A$33 million) in the first half of 2019 to just €5.3 million (around A$9 million) in the first half of 2020.
Of course, the company posted a hefty net loss of €67.5 million (around A$113 million) for the 2020 half-year, but Marley Spoon blamed this on non-cash fair market value adjustment on derivates as a result of the company's share price surge.
At the start of 2020 through to mid-March, Marley Spoon shares were worth less than 30 cents each on average. By August, shares had soared to well over $3 a pop.
The company said it had a cash balance of €18.4 million (around A$31 million) at the end of June.
Martley Spoon's quarterly financials for the September quarter are set to be released this evening.
Shares in Marley Spoon tacked on 3.87 per cent this afternoon to close worth $3.49 each before the trading halt was announced.