- Food kit delivery company Marley Spoon (MMM) has raised $16.6 million in an oversubscribed placement
- Marley Spoon saw a boost to its revenue over the March quarter as self-isolating consumers turn to different methods of buying food
- As such, today’s capital raise is to help fund global expansion despite the ongoing pandemic
- Marley Spoon placed new shares at $1.05 cents each — a discount of just less than three per cent to the company’s last closing price
- Today, shares are trading almost 14 per cent higher, currently worth $1.23 each
German-headquartered food kit delivery service Marley Spoon (MMM) has locked in a $16.6 million placement.
The company emerged in late March as one of the few winners from the COVID-19 crisis. A combination of panic-buyers depleting supermarket shelves and self-isolation decisions meant consumers were turning to alternative measures to get buy their food.
In late-April, Marley Spoon revealed a 46 per cent revenue increase over the March quarter compared to the same time the year before. In fact, the three weeks following mid-March saw Marley Spoon bank roughly $37 million (€22 million) in revenue.
As such, today’s capital raise has a different tune to what investors might be used to over the COVID-19 mayhem.
Rather than raise cash at a hefty discount to stay afloat amid the pandemic, Marley Spoon is raising the $16.6 million by placing new shares at $1.05 each — a marginal 2.8 per cent discount to their last closing price. What’s more, the placement was oversubscribed with strong demand from institutions and eligible shareholders.
Marley Spoon said the new funds will be used to help finance its global expansion. The company said it is well-positioned for future growth on three continents.
Marley Spoon CEO Fabian Siegel said the company is pleased with the strong level of support shown for the placement.
“These funds will strengthen our balance sheet and enable us to continue to execute our accelerated growth strategy,” Fabian said.
Shareholders have taken well to the news, too, with Marley Spoon shares trading a healthy 13.89 per cent higher in early afternoon trade, currently worth $1.23 each.