- Meal kit provider Marley Spoon (MMM) is looking to raise $56 million through an institutional placement to fund its global growth strategy
- The company plans to issue 17,437,000 CHESS depository interests (CDIs) at a$3.22 each
- These CDIs will rank equally with those already on issue, and the placement is expected to settle on Thursday, October 29
- The financing follows a strong third-quarter performance, in which the company saw a 163 per cent growth in U.S.-based revenue
- Marley Spoon shares are steady in early trade, worth $3.49 each
Meal kit provider Marley Spoon (MMM) is looking to raise $56 million through an institutional placement to fund its global growth strategy.
The company, which operates using a subscription-based model, intends to issue 17,437,000 CHESS depository interests (CDIs) at a price of $3.22 each. This price represents a five per cent discount compared to Marley Spoon's one-day volume weighted average trading price of $3.39 per share.
Each CDI will rank equally with those already on issue, and the placement is expected to close on Thursday, October 29, with the new CDIs eligible for trading from the following day.
Marley Spoon said the proceeds will be used primarily to support its global expansion initiatives, increase its balance sheet flexibility, and fund infrastructure investments.
"Given the continued traction in online meal kit adoption and strong recent business performance, Marley Spoon considers it appropriate to improve its balance sheet and access additional growth capital," the company said in a statement yesterday.
"With additional balance sheet flexibility, Marley Spoon will be well-positioned to accelerate its global growth strategy and capitalise on the opportunities available in its core markets," it continued.
In addition to the placement, the company's founder and CEO, Fabian Siegel, intends to sell roughly 750,000 CDIs — also at a price of $3.22 — in an off-market transaction on Thursday, October 29.
The financing comes after a strong third quarter performance, in which Marley Spoon saw a 118 per cent increase in total revenue compared to the same period last year.
Most significantly, U.S.-based revenue grew 163 per cent to €34.2 million (approximately A$56.94 million), driven by increases in the company's Martha & Marley Spoon and Dinnerly segments.
While third quarter US revenue was less than that of the second quarter, Marley Spoon said the decline was largely due to substantial investments, higher sales discounts and temporary operational changes brought on by the ongoing COVID-19 pandemic.
The company now anticipates hitting the higher end of its previously announced full-year guidance, in the range of approximately 90 to 100 per cent year-over-year growth.
Marley Spoon shares are steady in early trade, worth $3.49 each at 10:30 am AEDT.