TWL Trade Window

[Hectorplains]

Hmmm today's announcment isn't flash.

So 2023 guidance is now worse than expected, slow revenue being the culprit apparently, but hold on to your hat for 2024-25. The old delayed gratification... "targeting monthly EBITDA breakeven by the end of FY2025."

I don't think that's gonna help the tanked share price.  Another fine NZX IPO.

[Basil]

Yeap, another "outstandingly successful" IPO on the NZX lol

[kiwi2007]

Interesting depth - 10 small buyers of less than $500 in total around the $0.50 level. Then a drop to 2 bigger buyers (100,000)at $0.25 nothing in-between. Plenty on the sell side over $0.53.

[Minimoke]

I must have been having a wee doze when this IPO came out as I havent heard of them. Doesn't look like I have missed out on much. Though I intrigued on how they reckon they can forecast out to 2025.

I see in the interim report revenue per customer was $804. How can a sales person get out of bed in the morning and go "oh yah - I'm off to hunt out another $804".

So another company I can't quite see the point of.

[Hectorplains]

I must have been having a wee doze when this IPO came out as I havent heard of them. Doesn't look like I have missed out on much. Though I intrigued on how they reckon they can forecast out to 2025.

I see in the interim report revenue per customer was $804. How can a sales person get out of bed in the morning and go "oh yah - I'm off to hunt out another $804".

So another company I can't quite see the point of.

https://businessdesk.co.nz/article/markets/trade-window-needs-capital-fast... oh this is exciting.  Run out of cash by March.  The market is gonna love this. 

[winner (n)]

https://businessdesk.co.nz/article/markets/trade-window-needs-capital-fast... oh this is exciting.  Run out of cash by March.  The market is gonna love this. 

New 'cornerstone' investor pumps in $10m would thrill existing shareholders eh ......market cap now $50m

[Hectorplains]

New 'cornerstone' investor pumps in $10m would thrill existing shareholders eh ......market cap now $50m

Whoa, meaty cash raising.  42 million new shares to dilute the faithful.  They raised $10m last year too @ $2.80.  IPO was $2.70.  Fun times for those folk who stumped up to get it to market.  Market cap of $50 and they're wanting $20... that'll be interesting.  The notes pretty much say they'll take whatever they can get...under or over (chuckles.)
 Surprised the sp has held up thus far

[Hectorplains]

Share price has crawled back up to 43 cents today - sitting just under the raise price now.  The share price has fared better than I expected.  I still can't see the value in this as an investment.  A ten % discount to the share price of the day of the announcement seemed...hopeful.  I'd have thought you'd need to attach some generous options or warrants to sweeten the deal. 

They say they have 'key existing shareholder' support.  Special meeting in ten days to sign off (or not) on the plan.

[Hectorplains]

TWL ramping up the charm offensive, 2 announcements in two days:

DFAT approval  Basic Australian export red tape navigated.

Silver Fern Farms Existing customer continues to use TWL services.

[winner (n)]

Less revenue in F24 now than what they said a few weeks ago

And F24 not much higher than F23

Wonder where it all will end

https://www.nzx.com/announcements/409493

[Hectorplains]

Wonder where it all will end

Might that end be nigh?  Their nChain deal has gone mammaries up...

"Trade Window has engaged legal counsel and intends to pursue available remedies." That sounds expensive and drawn out.

Meanwhile, "The failure of nChain to settle the cash subscription payment has triggered an event of review under TradeWindow's bank facility agreements and TradeWindow will engage its financier immediately to seek a waiver of the review event." Meaning, they're at the bank's mercy. 

They promise to "continue to pursue other capital raising avenues as previously signalled to the market." Hmmm, the market may perceive that this signalling indicates not so much waving, as drowning.  I know what I'd be signalling back if I was a share holder. 

[Hectorplains]

An odd little announcement from CEO Smith this morning.

His new narrative is that it is a, "mutual decision with nChain to cancel the previously established strategic partnership agreement" rather than TWL being the groom left stone cold solo at the altar.

It's no surprise that the settlement is confidential but there's no reason given for it to be.  I guess they have to think of the children.

But here's the real kicker, "the cancellation of this agreement marks an opportunity for TradeWindow to pursue alternative avenues for growth, exploring new partnerships and opportunities that align with the company's objectives of advancing product development and expanding its market reach."  So Smith, believes that nChain's departure is actually a good thing?  Maybe they dodged a bullet, eh.   Why'd they hook up with them in the first place then?  I guess nChain (with it's annoying hoodrat capitalisation) was just that teen fling before you hunt down the long term partner. 

Clearly though Smith's a glass half full kinda guy...  cos next up is the 40% reduction in staffing. This is explained as a "reorganisation" (sic) that "reflects a streamlined operating model aimed at intensifying the commercialisation efforts of existing products."  Oh cool, that's...a lot of big words.  Here's me thinking that it was just a desperate attempt to par back operating costs.

Speaking of costs and all, the dream is "a monthly EBITDA break-even in Financial Year 2025."  That's probably not really gonna get a lot of pulses racing but you never know... Meanwhile, they're "actively engaged in discussions regarding funding with existing and potential new investors, who back the company's drive to profitability and sustainable growth."  Hoping then that someone will swipe right and they'll make a match...Someone to tap (so to speak...ahem)