Crunchfish: Rights issue to stay the course on extended timeline - Emergers

As discussed in our previous update, Crunchfish has now settled on a path forward for the company's financing. On Friday after the market closed, the company announced its resolution to carry out a preferential issue of shares and warrants (Units) amounting to SEK 57 million before issue costs, covered up to 45% (SEK 26 million) by subscription and guarantee commitments.

At full subscription, this would yield net proceeds of SEK 45.6 million or SEK 42.5 million should the guarantors opt for cash compensation. This will cover operating expenses for another 12 months, during which time Crunchfish also has two warrants (TO 10 and TO 11) that could potentially raise an additional SEK 36 million and SEK 48 million, respectively, in February and May 2025.

While the commercialization of Crunchfish's solution for offline payments has shown a longer sales cycle than expected, the company continues to build a broader base of potential counterparties and business arrangements.

We continue to see particular (albeit binary) potential in the new partnership with the world's largest IT consulting firm, TCS, and the ongoing trial and proposal process with an undisclosed major payment provider.

While this continues to support a high revaluation potential (previous fair value was 3x the price prior to the announcement of the rights issue), we now await the outcome of the rights issue before setting a new target, as it is customary for the share price to gravitate towards the subscription price (at SEK 1.45 per share) before it can regain momentum after having secured new fuel.

Länk till analysen i sin helhet: https://www.emergers.se/crunchfish-y24/