Marley Spoon making a disillusioned exit from the ASX

Nick Sundich Nick Sundich, April 26, 2023

Marley Spoon‘s (ASX:MMM) tenure on the ASX looks like it is almost over. The company announced a fundraising deal that will result in it joining forces with an SPAC company and delisting from the ASX.

 

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Marley Spoon

Since Marley Spoon listed in late 2018 it has been a rollercoaster ride. Shares skyrocketed from 25c to $3.55 in the first 6 months of the pandemic as demand for food delivery services boomed.

But, just like its peers, Marley Spoon never made a cent of profit and was in an ultra-competitive industry. The company recorded its inaugural positive EBITDA result (€5m) in the December quarter of CY22, but lost €11.9m from operating activities.

 

Marley Spoon (ASX:MMM) share price chart in the 5 years to February 22 2023, log scale (Source: TradingView)

 

Marley Spoon is making an exit

This morning, the company announced a fundraising deal that would see A$52m in fresh capital being injected as well as a Business Combination Agreement (BCA) with a Special Purpose Acquisition Company (SPAC) that is affiliated with one of Marley’s biggest shareholders (468 Capital).

The deal will see it end its listing in Australia and be solely listed in Germany. This would represent a 92% loss for shareholders who bought in at the company’s $1.42 per share IPO price in late 2018. But to be fair, it has company – Youfoodz listed in December 2020 at $1.57 per share and delisted just 7 months later having sold itself for 90c a share.

This will leave My Foodie Box (ASX:MBX) and My Food Bag (ASX:MFB) as the only two food delivery stocks, which are nursing post-listing returns of >90% and >75% respectively.

 

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