This meal kit delivery company has raised funds to boost its growth…
The post Why the Marley Spoon (ASX:MMM) share price is up 33% in a month appeared first on The Motley Fool Australia. –
The Marley Spoon AG (ASX: MMM) share price is on the rise again on Thursday.
At the time of writing, the subscription-based meal kit delivery company’s shares are up 1.5% to $3.20.
This means the Marley Spoon share price is now up 33% since this time last month.
Why is the Marley Spoon share price pushing higher today?
Today’s rise in the Marley Spoon share price has been driven by the release of an announcement this morning.
According to the release, the company has signed and closed a committed senior secured credit facility of four years with Runway Growth Credit Fund.
The release notes that the facility will give Marley Spoon access to up to US$65 million to support it with its growth strategy.
What are the terms?
These funds are being made available to Marley Spoon in two tranches. The first tranche is for up to US$45 million, of which US$30 million has been drawn at closing. The company has the right to draw the remaining balance of US$15 million until 30 June 2022, subject to being in compliance with the facility agreement.
The second tranche is for US$20 million and is available to be drawn through to 30 June 2022. Access to this tranche is conditional upon Marley Spoon being in compliance with customary financial covenants as well as undisclosed net revenue and contribution margin-based performance milestones.
Marley Spoon’s Chief Executive Officer, Fabian Siegel, was pleased with the agreement.
He said: “We are pleased to commence this new loan agreement with Runway and look forward to a productive engagement with the team of this leading US debt provider. The Facility provides access to debt financing to fund our growth strategy.“
Why are its shares up 33% in a month?
The Marley Spoon share price has been a very strong performer over the last few weeks and is now up 33% in a month. This is due to the belief that the recent lockdowns in Australia will give its ANZ sales another major boost, just like they did a year earlier.
Not that its ANZ sales necessarily need boosting. During the first quarter, Marley Spoon reported a 51% increase in active ANZ customer to 123,000 and a 67% jump in meals to 4.6 million.
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Up 32% this month, the Marley Spoon (ASX:MMM) share price is firing again today
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Marley Spoon AG. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.